Required: Prepare Shadee's May and June purchases budget for the adjustable poles.
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.
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Shadee Corporation expects to sell 570 sun shades in May and 320
in June. Each shade sells for $158. Shadee's beginning and ending
finished goods inventories for May are 65 and 50 shades,
respectively. Ending finished goods inventory for June will be 65
shades.
Each shade requires a total of $60.00 in direct materials that includes 4 adjustable
poles that cost $10.00 each. Shadee expects to have 120 in direct materials inventory
on May 1, 80 poles in inventory on May 31, and 120 poles in inventory on June 30.
Required:
Prepare Shadee's May and June purchases budget for the adjustable poles.
Answer is complete but not entirely correct.
May
June
Budgeted Cost of Poles Purchased
$
2,180 $
1,580 x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79ff1ae4-5cfa-487d-9b95-0c479cd3bb46%2F4e34a0be-d550-4515-a0d0-e4873961839c%2Fx6g4je9_processed.jpeg&w=3840&q=75)
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