Answer is not complete. SHADEE CORP. Budgeted Income Statement May June Budgeted Sales $ 10,800 $ 14,400 Budgeted Cost of Goods Sold 648 3,200 Budgeted Gross Margin Budgeted Selling and Administrative Expenses 1,200 1,200 Budgeted Net Operating Income
Ch. 8 Homework Question 8 (a)
Please solve and show the following
Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.
Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30 and variable manufacturing
Additional information:
Selling costs are expected to be 6 percent of sales.
Fixed administrative expenses per month total $1,200.
Required:
Complete Shadee's
Step 1
Given information is:
Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.
Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour.
Additional information:
Selling costs are expected to be 6 percent of sales.
Fixed administrative expenses per month total $1,200.
Step 2
Budgeted Income Statement
**The answer given in my first attempt was incorrect. I have attached a snippet of the Income Statement that needs to be competed using the information above***
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