SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 640 sun shades in May and 390 in June. Each shade sells for $155. Shadee's beginning and ending finished goods inventories for May are 75 and 55 shades, respectively. Ending finished goods inventory for June will be 70 shades. E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] 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 130 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's ixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $12 per unit produced. Additional information: . Selling costs are expected to be 7 percent of sales. Fixed administrative expenses per month total $1,500. 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.
SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 640 sun shades in May and 390 in June. Each shade sells for $155. Shadee's beginning and ending finished goods inventories for May are 75 and 55 shades, respectively. Ending finished goods inventory for June will be 70 shades. E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] 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 130 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's ixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $12 per unit produced. Additional information: . Selling costs are expected to be 7 percent of sales. Fixed administrative expenses per month total $1,500. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
am. 122.
![SB Exercise E8-5 to E8-10
[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 640 sun shades in May and 390 in June. Each shade sells for $155. Shadee's
beginning and ending finished goods inventories for May are 75 and 55 shades, respectively. Ending finished goods
inventory for June will be 70 shades.
E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]
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 130 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's
fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $12 per unit produced.
Additional information:
•Selling costs are expected to be 7 percent of sales.
•
Fixed administrative expenses per month total $1,500.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F70cb5188-f449-44f3-b228-1eca145b3d4d%2F96f891e3-b626-429f-bf57-7d99fceecf7d%2Foisf1qd_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 640 sun shades in May and 390 in June. Each shade sells for $155. Shadee's
beginning and ending finished goods inventories for May are 75 and 55 shades, respectively. Ending finished goods
inventory for June will be 70 shades.
E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]
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 130 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's
fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $12 per unit produced.
Additional information:
•Selling costs are expected to be 7 percent of sales.
•
Fixed administrative expenses per month total $1,500.
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education