Shadee Corporation expects to sell 580 sun shades in May and 390 in June. Each shade sells for $147. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 65 shades. E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] Each shade requires a total of $55.00 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 110 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 $8,000 per month, and variable manufacturing overhead is $14 per unit produced. Additional information: • Selling costs are expected to be 12 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 your intermediate calculations. Round your answers to 2 decimal places. Budgeted Sales Budgeted Gross Margin Budgeted Net Operating Income SHADEE CORPORATION Budgeted Income Statement S May 85,260.00 $ June 57,330.00
Shadee Corporation expects to sell 580 sun shades in May and 390 in June. Each shade sells for $147. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 65 shades. E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] Each shade requires a total of $55.00 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 110 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 $8,000 per month, and variable manufacturing overhead is $14 per unit produced. Additional information: • Selling costs are expected to be 12 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 your intermediate calculations. Round your answers to 2 decimal places. Budgeted Sales Budgeted Gross Margin Budgeted Net Operating Income SHADEE CORPORATION Budgeted Income Statement S May 85,260.00 $ June 57,330.00
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
Please Provide Explanation Answer Do not give solution in image formet
![Required information
SB Exercise E8-5 to E8-10
[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 580 sun shades in May and 390 in June. Each shade sells for $147. Shadee's
beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods
inventory for June will be 65 shades.
E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]
Each shade requires a total of $55.00 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 110 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 $8,000 per month, and variable manufacturing overhead is $14 per unit produced.
Additional information:
• Selling costs are expected to be 12 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 your intermediate calculations. Round your answers to 2 decimal places.
Budgeted Sales
Budgeted Gross Margin
Budgeted Net Operating Income
SHADEE CORPORATION
Budgeted Income Statement
S
May
85,260.00 $
June
57,330.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed4d9e12-99f1-466b-ba8a-e2fc2cdd22ec%2F32e912a7-a79b-4851-a56f-bb22b0ebd4f3%2F0udcwy_processed.png&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 580 sun shades in May and 390 in June. Each shade sells for $147. Shadee's
beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods
inventory for June will be 65 shades.
E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]
Each shade requires a total of $55.00 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 110 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 $8,000 per month, and variable manufacturing overhead is $14 per unit produced.
Additional information:
• Selling costs are expected to be 12 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 your intermediate calculations. Round your answers to 2 decimal places.
Budgeted Sales
Budgeted Gross Margin
Budgeted Net Operating Income
SHADEE CORPORATION
Budgeted Income Statement
S
May
85,260.00 $
June
57,330.00
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