" Each visor requires a total of $5.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 28 closures on hand on May 1, 17 closures on May 31, and 25 closures on June 30 and variable manufacturing overhead is $1.00 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $9 per hour. Additional information: Selling costs are expected to be 7 percent of sales. Fixed administrative expenses per month total $1,200. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $7.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.) Budgeted Gross Margin SHADEE CORP. Budgeted Income Statement Budgeted Net Operating Income May June
" Each visor requires a total of $5.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 28 closures on hand on May 1, 17 closures on May 31, and 25 closures on June 30 and variable manufacturing overhead is $1.00 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $9 per hour. Additional information: Selling costs are expected to be 7 percent of sales. Fixed administrative expenses per month total $1,200. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $7.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.) Budgeted Gross Margin SHADEE CORP. Budgeted Income Statement Budgeted Net Operating Income May June
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required information
[The following information applies to the questions displayed below.)
Shadee Corp. expects to sell 640 sun visors in May and 430 in June. Each visor sells for $28. Shadee's beginning and
ending finished goods inventories for May are 75 and 40 units, respectively. Ending finished goods inventory for June will
be 55 units.
Each visor requires a total of $5.50 in direct materials that includes an adjustable closure that the company purchases from a supplier
at a cost of $2.50 each. Shadee wants to have 28 closures on hand on May 1, 17 closures on May 31, and 25 closures on June 30 and
variable manufacturing overhead is $1.00 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and
Shadee pays its workers $9 per hour.
Additional information:
. Selling costs are expected to be 7 percent of sales.
• Fixed administrative expenses per month total $1,200.
Transcribed Image Text:a
01
inces
Each visor requires a total of $5.50 in direct materials that includes an adjustable closure that the company purchases from a supplier
at a cost of $2.50 each. Shadee wants to have 28 closures on hand on May 1, 17 closures on May 31, and 25 closures on June 30 and
variable manufacturing overhead is $1.00 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and
Shadeepays its workers $9 per hour.
Additional information:
• Selling costs are expected to be 7 percent of sales.
. Fixed administrative expenses per month total $1,200.
Required:
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $7.00.)
(Do not round your intermediate calculations. Round your answers to 2 decimal places.)
Budgeted Gross Margin
SHADEE CORP.
Budgeted Income Statement
Budgeted Net Operating Income
May
June
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