FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
Additional information:
- Selling costs are expected to be 6 percent of sales.
- Fixed administrative expenses per month total $12,000.
Required:
Prepare Shadee’s
Everyhting else is right except for the June value for budgeted cost of goods sold.
Transcribed Image Text:SHADEE CORPORATION
Budgeted Income Statement
Budgeted Sales
Budgeted Cost of Goods Sold
Budgeted Gross Margin
Budgeted Selling and Administrative Expenses
Budgeted Net Operating Income
$
$
$
May
108,000 $
60,000
48,000
18,480
29,520
June
144,000
20,640
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