Shadee Corporation expects to sell 500 sun shades in May and 410 in June. Each shade sells for $127. Shadee's beginning and ending finished goods inventories for May are 70 and 45 shades, respectively. Ending finished goods inventory for June will be 50 shades. E8-6 (Algo) Preparing Direct Materials Purchases Budget [LO 8-3c, e] Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Required: Prepare Shadee's May and June purchases budget for the adjustable poles
Shadee Corporation expects to sell 500 sun shades in May and 410 in June. Each shade sells for $127. Shadee's beginning and ending finished goods inventories for May are 70 and 45 shades, respectively. Ending finished goods inventory for June will be 50 shades. E8-6 (Algo) Preparing Direct Materials Purchases Budget [LO 8-3c, e] Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Required: Prepare Shadee's May and June purchases budget for the adjustable poles
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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![Shadee Corporation expects to sell 500 sun shades in May and 410 in June. Each shade sells for $127. Shadee's
beginning and ending finished goods inventories for May are 70 and 45 shades, respectively. Ending finished goods
inventory for June will be 50 shades..
E8-6 (Algo) Preparing Direct Materials Purchases Budget [LO 8-3c, e]
Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to
have 120 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in Inventory on June 30.
Required:
Prepare Shadee's May and June purchases budget for the adjustable poles
Budgeted Cost of Closures Purchased
May
June](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fef39d20f-07dc-4e3f-bde0-4590ef91b9e6%2F0c8d2330-54ef-4a94-907f-182d9822163f%2Fgenvae_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Shadee Corporation expects to sell 500 sun shades in May and 410 in June. Each shade sells for $127. Shadee's
beginning and ending finished goods inventories for May are 70 and 45 shades, respectively. Ending finished goods
inventory for June will be 50 shades..
E8-6 (Algo) Preparing Direct Materials Purchases Budget [LO 8-3c, e]
Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to
have 120 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in Inventory on June 30.
Required:
Prepare Shadee's May and June purchases budget for the adjustable poles
Budgeted Cost of Closures Purchased
May
June
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