Shadee Corp. expects to sell 640 sun visors in May and 350 in June. Each visor sells for $25. Shadee’s beginning and ending finished goods inventories for May are 60 and 50 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $4.00 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, 16 closures on May 31, and 21 closures on June 30 and variable manufacturing overhead is $2.25 per unit produced. Suppose that each visor takes 0.90 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 $1,600. Required:Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.40.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.) How would I complete the income statement
Shadee Corp. expects to sell 640 sun visors in May and 350 in June. Each visor sells for $25. Shadee’s beginning and ending finished goods inventories for May are 60 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.
Each visor requires a total of $4.00 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, 16 closures on May 31, and 21 closures on June 30 and variable manufacturing overhead is $2.25 per unit produced. Suppose that each visor takes 0.90 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 $1,600.
Required:
Complete Shadee's
How would I complete the income statement
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