SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 570 sun shades in May and 400 in June. Each shade sells for $143. Shadee's beginning and ending finished goods inventories for May are 65 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $14 per hour. Additionally, Shadee's fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $10 per unit produced. Additional information: Selling costs are expected to be 9 percent of sales. Fixed administrative expenses per month total $1,600. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Answer is complete but not entirely correct. Budgeted Sales Budgeted Cost of Goods Sold Budgeted Gross Margin SHADEE CORPORATION Budgeted Income Statement May June $ 81,510.00 $ 57,200.00 $ 67,140.00 $ 49,800.000 $ 14,370.00 $ 7,400.00 Budgeted Selling and Administrative Expenses $ 8,935.90 $ 6,748.000 Budgeted Net Operating Income 5,434.10 $ 652.00
SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 570 sun shades in May and 400 in June. Each shade sells for $143. Shadee's beginning and ending finished goods inventories for May are 65 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $14 per hour. Additionally, Shadee's fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $10 per unit produced. Additional information: Selling costs are expected to be 9 percent of sales. Fixed administrative expenses per month total $1,600. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Answer is complete but not entirely correct. Budgeted Sales Budgeted Cost of Goods Sold Budgeted Gross Margin SHADEE CORPORATION Budgeted Income Statement May June $ 81,510.00 $ 57,200.00 $ 67,140.00 $ 49,800.000 $ 14,370.00 $ 7,400.00 Budgeted Selling and Administrative Expenses $ 8,935.90 $ 6,748.000 Budgeted Net Operating Income 5,434.10 $ 652.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![SB Exercise E8-5 to E8-10
[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 570 sun shades in May and 400 in June. Each shade sells for $143. Shadee's
beginning and ending finished goods inventories for May are 65 and 50 shades, respectively. Ending finished goods
inventory for June will be 60 shades.
E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]
Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to
have 130 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 110 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $14 per hour. Additionally, Shadee's
fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $10 per unit produced.
Additional information:
Selling costs are expected to be 9 percent of sales.
Fixed administrative expenses per month total $1,600.
Required:
Prepare Shadee's budgeted income statement for the months of May and June.
Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.
Answer is complete but not entirely correct.
Budgeted Sales
Budgeted Cost of Goods Sold
Budgeted Gross Margin
SHADEE CORPORATION
Budgeted Income Statement
May
June
$ 81,510.00 $ 57,200.00
$ 67,140.00 $ 49,800.000
$ 14,370.00 $ 7,400.00
Budgeted Selling and Administrative Expenses
$ 8,935.90 $ 6,748.000
Budgeted Net Operating Income
5,434.10 $ 652.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff857092f-b278-47cd-a146-d689ee69c1ae%2F4141064b-02a4-4545-b9ec-03b2b4bcf35f%2F5o6rk4v_processed.png&w=3840&q=75)
Transcribed Image Text:SB Exercise E8-5 to E8-10
[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 570 sun shades in May and 400 in June. Each shade sells for $143. Shadee's
beginning and ending finished goods inventories for May are 65 and 50 shades, respectively. Ending finished goods
inventory for June will be 60 shades.
E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]
Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to
have 130 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 110 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $14 per hour. Additionally, Shadee's
fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $10 per unit produced.
Additional information:
Selling costs are expected to be 9 percent of sales.
Fixed administrative expenses per month total $1,600.
Required:
Prepare Shadee's budgeted income statement for the months of May and June.
Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.
Answer is complete but not entirely correct.
Budgeted Sales
Budgeted Cost of Goods Sold
Budgeted Gross Margin
SHADEE CORPORATION
Budgeted Income Statement
May
June
$ 81,510.00 $ 57,200.00
$ 67,140.00 $ 49,800.000
$ 14,370.00 $ 7,400.00
Budgeted Selling and Administrative Expenses
$ 8,935.90 $ 6,748.000
Budgeted Net Operating Income
5,434.10 $ 652.00
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