Shadee Corporation expects to sell 550 sun shades in May and 380 in June. Each shade sells for $153. Shadee's beginning and ending finished goods inventories for May are 75 and 55 shades, respectively. Ending finished goods inventory for June will be 65 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, 100 poles in inventory on May 31, and 110 poles in inventory on June 30. Prepare Shadee's May and June purchases budget for the ADJUSTABLE poles. Budgeted Cost of Closures Purchased May/June

Shadee Corporation expects to sell 550 sun shades in May and 380 in June. Each shade sells for $153. Shadee's beginning and ending finished goods inventories for May are 75 and 55 shades, respectively. Ending finished goods inventory for June will be 65 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, 100 poles in inventory on May 31, and 110 poles in inventory on June 30. Prepare Shadee's May and June purchases budget for the ADJUSTABLE poles. Budgeted Cost of Closures Purchased May/June

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PB: Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and...

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Shadee Corporation expects to sell 620 sun shades in May and 440 in June. Each shade sells for $137. Shadee's beginning and ending finished goods inventories for May are 60 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $10.00 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 $12,000 per month, and variable manufacturing overhead is $14 per unit produced. Additional information: . Selling costs are expected to be 8 percent of sales. . Fixed administrative expenses per month total $1,400. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round…
Shadee Corporation expects to sell 600 sun shades in May and 800 in June. Each shade sells for $180. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 poles in direct materials inventory on May 1, 80 poles in inventory on May 31, and 100 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $9 per hour. Additionally, Shadee's fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $13 per unit produced. Additional information: . Selling costs are expected to be 6 percent of sales. . Fixed administrative expenses per month total $12,000. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round…
Shadee Corporation expects to sell 600 sun shades in May and 800 in June. Each shade sells for $180. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 poles in direct materials inventory on May 1, 80 poles in inventory on May 31, and 100 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $9 per hour. Additionally, Shadee’s fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $13 per unit produced. Additional information: Selling costs are expected to be 6 percent of sales. Fixed administrative expenses per month total $12,000. Required: Prepare Shadee’s budgeted income statement for the months of May and June. Everyhting else is…
Shadee Corporation expects to sell 600 sun shades in May and 800 in June. Each shade sells for $180. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 poles in direct materials inventory on May 1, 80 poles in inventory on May 31, and 100 poles in inventory on June 30. Suppose that each shade takes three direct labor hours to produce and Shadee pays its workers $9 per hour. Additional information: Selling costs are expected to be 6 percent of sales. Fixed administrative expenses per month total $12,000. Required: Prepare Shadee’s selling and administrative expense budget for May and June. Note:- • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. • Answer completely. • You will get up…
Shadee Corporation expects to sell 640 sun shades in May and 420 in June. Each shade sells for $157. Shadee's beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 130 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.
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