Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 600 sun visors in May and 370 in June. Each visor sells for $19. Shadee's beginning and ending finished goods inventories for May are 65 and 55 units, respectively. Ending finished goods inventory for June will be 65 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 $1.50 each. Shadee wants to have 34 closures on hand on May 1, 22 closures on May 31, and 28 closures on June 30 and variable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.10 direct labor hours to produce and Shadee pays its workers $10 per hour. Additional information: Selling costs are expected to be 12 percent of sales. • Fixed administrative expenses per month total $1,700. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $3.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.) SHADEE CORP. Budgeted Income Statement May June Budgeted Gross Margin
Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 600 sun visors in May and 370 in June. Each visor sells for $19. Shadee's beginning and ending finished goods inventories for May are 65 and 55 units, respectively. Ending finished goods inventory for June will be 65 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 $1.50 each. Shadee wants to have 34 closures on hand on May 1, 22 closures on May 31, and 28 closures on June 30 and variable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.10 direct labor hours to produce and Shadee pays its workers $10 per hour. Additional information: Selling costs are expected to be 12 percent of sales. • Fixed administrative expenses per month total $1,700. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $3.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.) SHADEE CORP. Budgeted Income Statement May June Budgeted Gross Margin
Chapter1: Financial Statements And Business Decisions
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Required information
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 600 sun visors in May and 370 in June. Each visor sells for $19. Shadee's beginning and
ending finished goods inventories for May are 65 and 55 units, respectively. Ending finished goods inventory for June will
be 65 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 $1.50 each. Shadee wants to have 34 closures on hand on May 1, 22 closures on May 31, and 28 closures on June 30 and
variable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.10 direct labor hours to produce and
Shadee pays its workers $10 per hour.
Additional information:
• Selling costs are expected to be 12 percent of sales.
• Fixed administrative expenses per month total $1,700.
Required:
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $3.00.)
(Do not round your intermediate calculations. Round your answers to
decimal places.)
SHADEE CORP.
Budgeted Income Statement
May
June
Budgeted Gross Margin
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Required information
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 600 sun visors in May and 370 in June. Each visor sells for $19. Shadee's beginning and
ending finished goods inventories for May are 65 and 55 units, respectively. Ending finished goods inventory for June will
be 65 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 $1.50 each. Shadee wants to have 34 closures on hand on May 1, 22 closures on May 31, and 28 closures on June 30 and
variable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.10 direct labor hours to produce and
Shadee pays its workers $10 per hour.
Additional information:
• Selling costs are expected to be 12 percent of sales.
• Fixed administrative expenses per month total $1,700.
Required:
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $3.00.)
(Do not round your intermediate calculations. Round your answers to
decimal places.)
SHADEE CORP.
Budgeted Income Statement
May
June
Budgeted Gross Margin
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