Shadee Corporation expects to sell 570 sun shades in May and 360 in June. Each shade sells for $152. Shadee's beginning and ending finished goods inventories for May are 70 and 55 shades, respectively. Ending finished goods inventory for June will be 65 shades. E8-6 (Algo) Preparing Direct Materials Purchases Budget [LO 8-3c, e] Each shade requires a total of $60.00 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, 80 poles in inventory on May 31, and 100 poles in inventory on June 30. Required: Prepare Shadee's May and June purchases budget for the adjustable poles.
Shadee Corporation expects to sell 570 sun shades in May and 360 in June. Each shade sells for $152. Shadee's beginning and ending finished goods inventories for May are 70 and 55 shades, respectively. Ending finished goods inventory for June will be 65 shades. E8-6 (Algo) Preparing Direct Materials Purchases Budget [LO 8-3c, e] Each shade requires a total of $60.00 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, 80 poles in inventory on May 31, and 100 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.
Question
mi.3
![Required information
SB Exercise E8-5 to E8-10
[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 570 sun shades in May and 360 in June. Each shade sells for $152.
Shadee's beginning and ending finished goods inventories for May are 70 and 55 shades, respectively.
Ending finished goods inventory for June will be 65 shades.
E8-6 (Algo) Preparing Direct Materials Purchases Budget [LO 8-3c, e]
Each shade requires a total of $60.00 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, 80 poles in inventory on May 31, and 100 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%2F988f7122-342c-402f-a95d-3ec26df3b224%2F9562fe23-3620-44e3-b270-64388f4ab8fe%2Ffoqfc6d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
SB Exercise E8-5 to E8-10
[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 570 sun shades in May and 360 in June. Each shade sells for $152.
Shadee's beginning and ending finished goods inventories for May are 70 and 55 shades, respectively.
Ending finished goods inventory for June will be 65 shades.
E8-6 (Algo) Preparing Direct Materials Purchases Budget [LO 8-3c, e]
Each shade requires a total of $60.00 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, 80 poles in inventory on May 31, and 100 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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