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. 8-9 (Static) Preparing Selling and Administrative Expense Budget [LO 8-3g] ach shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to h O poles in direct materials inventory on May 1, 80 poles in inventory on May 31, and 100 poles in inventory on June 30. uppose 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. equired: epare Shadee's selling and administrative expense budget for May and June. Budgeted Selling and Administrative Expenses May June
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. 8-9 (Static) Preparing Selling and Administrative Expense Budget [LO 8-3g] ach shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to h O poles in direct materials inventory on May 1, 80 poles in inventory on May 31, and 100 poles in inventory on June 30. uppose 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. equired: epare Shadee's selling and administrative expense budget for May and June. Budgeted Selling and Administrative Expenses May June
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.
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![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.
E8-9 (Static) Preparing Selling and Administrative Expense Budget [LO 8-3g]
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.
Budgeted Selling and Administrative Expenses
May
June](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd023585-0921-4d93-92ad-b5e94266f88f%2Feff7309a-96c4-4138-a583-9a6992f08736%2Frlvfszh_processed.png&w=3840&q=75)
Transcribed Image Text: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.
E8-9 (Static) Preparing Selling and Administrative Expense Budget [LO 8-3g]
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.
Budgeted Selling and Administrative Expenses
May
June
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