Shadee Corporation expects to sell 540 sun shades in May and 310 in June. Each shade sells for $166. Shadee’s beginning and ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $65.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 120 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee’s fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $12 per unit produced. Prepare Shadee’s budgeted income statement for the months of May and June. budgeted income statement May June budgeted gross margin budgeted net operating income Budgeted Cost of Goods Sold Budgeted Interest Expense Budgeted Sales Budgeted Sales Returns and Allowances Budgeted Selling and Administrative Expenses
Shadee Corporation expects to sell 540 sun shades in May and 310 in June. Each shade sells for $166. Shadee’s beginning and ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory for June will be 60 shades.
Each shade requires a total of $65.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 120 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee’s fixed manufacturing
Prepare Shadee’s
| budgeted income statement | May | June |
| budgeted gross margin | ||
| budgeted net operating income |
Budgeted Cost of Goods Sold
Budgeted Interest Expense
Budgeted Sales
Budgeted Sales Returns and Allowances
Budgeted Selling and Administrative Expenses
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