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. 8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $5.00 each Shadee expects to mave 120 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee ixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $10 per unit produced. Additional information: Selling costs are expected to be 10 percent of sales. . Fixed administrative expenses per month total $1,600. Required: Prepare Shadee's budgeted income statement for the months of May and June.
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. 8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $5.00 each Shadee expects to mave 120 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee ixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $10 per unit produced. Additional information: Selling costs are expected to be 10 percent of sales. . Fixed administrative expenses per month total $1,600. Required: Prepare Shadee's budgeted income statement for the months of May and June.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]
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.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's
fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $10 per unit produced.
Additional information:
. Selling costs are expected to be 10 percent of sales.
. Fixed administrative expenses per month total $1,600.
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%2Fef39d20f-07dc-4e3f-bde0-4590ef91b9e6%2F60fc507f-5201-4314-b04a-a9eec46eb01e%2Frecuifo_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.
E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]
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.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's
fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $10 per unit produced.
Additional information:
. Selling costs are expected to be 10 percent of sales.
. Fixed administrative expenses per month total $1,600.
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.
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