Shadee Corp. expects to sell 520 sun visors in May and 300 in June. Each visor sells for $14. Shadee’s beginning and ending finished goods inventories for May are 75 and 55 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $4.50 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 31 closures on hand on May 1, 23 closures on May 31, and 22 closures on June 30 and variable manufacturing overhead is $1.25 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 7 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 $1.50.)
Shadee Corp. expects to sell 520 sun visors in May and 300 in June. Each visor sells for $14. Shadee’s beginning and ending finished goods inventories for May are 75 and 55 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $4.50 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 31 closures on hand on May 1, 23 closures on May 31, and 22 closures on June 30 and variable manufacturing
Additional information: Selling costs are expected to be 7 percent of sales.
Fixed administrative expenses per month total $1,300.
Required: Complete Shadee's
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