Shadee Corporation expects to sell 610 sun shades in May and 400 in June. Each shade sells for $148. Shadee's beginning and ending finished goods inventories for May are 65 and 40 shades, respectively. Ending finished goods inventory for June will be 55 shades. och shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to ve 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 poles in inventory on June 30. uppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's- xed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $14 per unit produced, Additional information: -Selling costs are expected to be 9 percent of sales. - Fixed administrative expenses per month total $1,200. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Sales Budgeted Gross Margin SHADEE CORPORATION Budgeted Income Statement Budgeted Net Operating Income May June
Shadee Corporation expects to sell 610 sun shades in May and 400 in June. Each shade sells for $148. Shadee's beginning and ending finished goods inventories for May are 65 and 40 shades, respectively. Ending finished goods inventory for June will be 55 shades. och shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to ve 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 poles in inventory on June 30. uppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's- xed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $14 per unit produced, Additional information: -Selling costs are expected to be 9 percent of sales. - Fixed administrative expenses per month total $1,200. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Sales Budgeted Gross Margin SHADEE CORPORATION Budgeted Income Statement Budgeted Net Operating Income May June
Chapter7: Budgeting
Section: Chapter Questions
Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...
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![Shadee Corporation expects to sell 610 sun shades in May and 400 in June. Each shade sells for $148. Shadee's
beginning and ending finished goods inventories for May are 65 and 40 shades, respectively. Ending finished goods
inventory for June will be 55 shades,
Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to
have 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's
fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $14 per unit produced.
Additional information:
Selling costs are expected to be 9 percent of sales.
Fixed administrative expenses per month total $1,200.
Required:
Prepare Shadee's budgeted income statement for the months of May and June.
Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.
Budgeted Sales
Budgeted Gross Margin
SHADEE CORPORATION
Budgeted Income Statement
Budgeted Net Operating Income
May
June](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58f64e99-b3fb-491d-a9f5-7a66a1bd819c%2Fc84c4ae1-f55c-4818-a403-a6f9c612c243%2F8kav7c6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Shadee Corporation expects to sell 610 sun shades in May and 400 in June. Each shade sells for $148. Shadee's
beginning and ending finished goods inventories for May are 65 and 40 shades, respectively. Ending finished goods
inventory for June will be 55 shades,
Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to
have 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's
fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $14 per unit produced.
Additional information:
Selling costs are expected to be 9 percent of sales.
Fixed administrative expenses per month total $1,200.
Required:
Prepare Shadee's budgeted income statement for the months of May and June.
Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.
Budgeted Sales
Budgeted Gross Margin
SHADEE CORPORATION
Budgeted Income Statement
Budgeted Net Operating Income
May
June
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