Budgeted Cost of Poles Purchased
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![!
Required information
The following information applies to the questions displayed below]
Shadee Corporation expects to sell 540 sun shades in May and 310 in June. Each shade sells for $156. Shadee's
beginning and ending finished goods inventories for May are 65 and 55 shades, respectively. Ending finished goods
inventory for June will be 50 shades.
Each shade requires a total of $65.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to
have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 100 poles in inventory on June 30.
Required:
Prepare Shadee's May and June purchases budget for the adjustable poles.
Budgeted Cost of Poles Purchased
May
June](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9eecc5f2-2cf9-428a-b7a8-3316ca8b0d9e%2F385cdfdb-4db0-458f-8f5b-aec5777a7d2a%2F2y6kvr_processed.png&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
