Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 500 sun visors in May and 360 in June. Each visor sells for $19. Shadee's beginning and ending finished goods inventories for May are 60 and 55 units, respectively. Ending finished goods inventory for June will be 70 units. Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 15 closures on May 31, and 26 closures on June 30 and variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.40 direct labor hours to produce and Shadee pays its workers $7 per hour. Additional information: • Selling costs are expected to be 12 percent of sales. • Fixed administrative expenses per month total $1,300. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $4.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.) SHADEE CORP. Budgeted Income Statement May June Budgeted Gross Margin Budgeted Net Operating Income
Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 500 sun visors in May and 360 in June. Each visor sells for $19. Shadee's beginning and ending finished goods inventories for May are 60 and 55 units, respectively. Ending finished goods inventory for June will be 70 units. Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 15 closures on May 31, and 26 closures on June 30 and variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.40 direct labor hours to produce and Shadee pays its workers $7 per hour. Additional information: • Selling costs are expected to be 12 percent of sales. • Fixed administrative expenses per month total $1,300. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $4.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.) SHADEE CORP. Budgeted Income Statement May June Budgeted Gross Margin Budgeted Net Operating Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 500 sun visors in May and 360 in June. Each visor sells for $19. Shadee's beginning and
ending finished goods inventories for May are 60 and 55 units, respectively. Ending finished goods inventory for June will
be 70 units.
Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier
at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 15 closures on May 31, and 26 closures on June 30 and
variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.40 direct labor hours to produce and
Shadee pays its workers $7 per hour.
Additional information:
Selling costs are expected to be 12 percent of sales.
Fixed administrative expenses per month total $1,300.
Required:
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $4.00.)
(Do not round your intermediate calculations. Round your answers to 2 decimal places.)
SHADEE CORP.
Budgeted Income Statement
May
June
Budgeted Gross Margin
Budgeted Net Operating Income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8e9f2beb-91d4-4a43-a4ac-2bdc22725bbc%2F760fcc42-32a5-4e46-84f9-f7b5217ae7f5%2Feiakgpo_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 500 sun visors in May and 360 in June. Each visor sells for $19. Shadee's beginning and
ending finished goods inventories for May are 60 and 55 units, respectively. Ending finished goods inventory for June will
be 70 units.
Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier
at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 15 closures on May 31, and 26 closures on June 30 and
variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.40 direct labor hours to produce and
Shadee pays its workers $7 per hour.
Additional information:
Selling costs are expected to be 12 percent of sales.
Fixed administrative expenses per month total $1,300.
Required:
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $4.00.)
(Do not round your intermediate calculations. Round your answers to 2 decimal places.)
SHADEE CORP.
Budgeted Income Statement
May
June
Budgeted Gross Margin
Budgeted Net Operating Income
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