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

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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
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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