f 6 ! Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 600 sun shades in May and 800 in June. Each shade sells for $180. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 poles in direct materials inventory on May 1, 80 poles in inventory on May 31, and 100 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $9 per hour. Additionally, Shadee's fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $13 per unit produced. Additional information: • Selling costs are expected to be 6 percent of sales. • Fixed administrative expenses per month total $12,000. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. > Answer is complete but not entirely correct. SHADEE CORPORATION Budgeted Income Statement Budgeted Sales Budgeted Cost of Goods Sold May June $ 108,000 $ 144,000 75,750 x 70,780 Budgeted Gross Margin Budgeted Selling and Administrative Expenses $ 32,250 $ 73,220 x (18,480) (20,640) S
f 6 ! Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 600 sun shades in May and 800 in June. Each shade sells for $180. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 poles in direct materials inventory on May 1, 80 poles in inventory on May 31, and 100 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $9 per hour. Additionally, Shadee's fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $13 per unit produced. Additional information: • Selling costs are expected to be 6 percent of sales. • Fixed administrative expenses per month total $12,000. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. > Answer is complete but not entirely correct. SHADEE CORPORATION Budgeted Income Statement Budgeted Sales Budgeted Cost of Goods Sold May June $ 108,000 $ 144,000 75,750 x 70,780 Budgeted Gross Margin Budgeted Selling and Administrative Expenses $ 32,250 $ 73,220 x (18,480) (20,640) S
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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![f 6
!
Required information
[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 600 sun shades in May and 800 in June. Each shade sells for $180. Shadee's
beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods
inventory for June will be 60 shades.
Each shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have
120 poles in direct materials inventory on May 1, 80 poles in inventory on May 31, and 100 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $9 per hour. Additionally, Shadee's
fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $13 per unit produced.
Additional information:
•
Selling costs are expected to be 6 percent of sales.
• Fixed administrative expenses per month total $12,000.
Required:
Prepare Shadee's budgeted income statement for the months of May and June.
Note: Do not round your intermediate calculations.
> Answer is complete but not entirely correct.
SHADEE CORPORATION
Budgeted Income Statement
Budgeted Sales
Budgeted Cost of Goods Sold
May
June
$ 108,000
$ 144,000
75,750 x
70,780
Budgeted Gross Margin
Budgeted Selling and Administrative Expenses
$ 32,250 $ 73,220 x
(18,480)
(20,640)
S](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22bca866-738c-4a19-a621-9987fd5f7e85%2Fb9cfdd3a-b2f8-4123-876d-13353be443a1%2Fmig5114_processed.jpeg&w=3840&q=75)
Transcribed Image Text:f 6
!
Required information
[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 600 sun shades in May and 800 in June. Each shade sells for $180. Shadee's
beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods
inventory for June will be 60 shades.
Each shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have
120 poles in direct materials inventory on May 1, 80 poles in inventory on May 31, and 100 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $9 per hour. Additionally, Shadee's
fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $13 per unit produced.
Additional information:
•
Selling costs are expected to be 6 percent of sales.
• Fixed administrative expenses per month total $12,000.
Required:
Prepare Shadee's budgeted income statement for the months of May and June.
Note: Do not round your intermediate calculations.
> Answer is complete but not entirely correct.
SHADEE CORPORATION
Budgeted Income Statement
Budgeted Sales
Budgeted Cost of Goods Sold
May
June
$ 108,000
$ 144,000
75,750 x
70,780
Budgeted Gross Margin
Budgeted Selling and Administrative Expenses
$ 32,250 $ 73,220 x
(18,480)
(20,640)
S
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