Shadee Corp. expects to sell 560 sun visors in May and 310 in June. Each visor sells for $23. Shadee's beginning and ending finished goods inventories for May are 85 and 55 units, respectively. Ending finished goods inventory for June w be 70 units. -10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] h visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a s cost of $2.50 each. Shadee wants to have 35 closures on hand on May 1, 16 closures on May 31, and 28 closures on June able manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.40 direct labor hours to produce dee pays its workers $10 per hour.
Shadee Corp. expects to sell 560 sun visors in May and 310 in June. Each visor sells for $23. Shadee's beginning and ending finished goods inventories for May are 85 and 55 units, respectively. Ending finished goods inventory for June w be 70 units. -10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] h visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a s cost of $2.50 each. Shadee wants to have 35 closures on hand on May 1, 16 closures on May 31, and 28 closures on June able manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.40 direct labor hours to produce dee pays its workers $10 per hour.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Requlred Informatlon
SB Exercise E8-5 to E8-10
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 560 sun visors in May and 310 in June. Each visor sells for $23. Shadee's beginning and
ending finished goods inventories for May are 85 and 55 units, respectively. Ending finished goods Inventory for June will
be 70 units.
E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]
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 $2.50 each. Shadee wants to have 35 closures on hand on May 1, 16 closures on May 31, and 28 closures on June 30 and
varlable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.46 direct labor hours to produce and
Shadee pays its workers $10 per hour.
Additional information:
• Selling costs are expected to be 10 percent of sales.
• Fixed administrative expenses per month total $1,700.
Requlred:
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $4.00.)
(Do not round your Intermediate calculatlons. Round your answers to 2 decimal places.)
SHADEE CORP.
Budgeted Income Statement
May
June
Budgeted Gross Margin
Budgeted Net Operating Income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F62ef4338-0c9e-4b24-8609-77122903df1f%2Ff721b789-d94d-4477-8db3-769c7cdfcd94%2F2uf2dx_processed.png&w=3840&q=75)
Transcribed Image Text:Requlred Informatlon
SB Exercise E8-5 to E8-10
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 560 sun visors in May and 310 in June. Each visor sells for $23. Shadee's beginning and
ending finished goods inventories for May are 85 and 55 units, respectively. Ending finished goods Inventory for June will
be 70 units.
E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]
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 $2.50 each. Shadee wants to have 35 closures on hand on May 1, 16 closures on May 31, and 28 closures on June 30 and
varlable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.46 direct labor hours to produce and
Shadee pays its workers $10 per hour.
Additional information:
• Selling costs are expected to be 10 percent of sales.
• Fixed administrative expenses per month total $1,700.
Requlred:
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $4.00.)
(Do not round your Intermediate calculatlons. Round your answers to 2 decimal places.)
SHADEE CORP.
Budgeted Income Statement
May
June
Budgeted Gross Margin
Budgeted Net Operating Income
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