Shadee Corporation expects to sell 610 sun shades in May and 340 in June. Each shade sells for $140. Shadee's beginning and ending finished goods inventories for May are 70 and 50 shades, respectively. Ending finished goods inventory for June will be 65 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. Required: Prepare Shadee's May and June purchases budget for the adjustable poles.
Shadee Corporation expects to sell 610 sun shades in May and 340 in June. Each shade sells for $140. Shadee's beginning and ending finished goods inventories for May are 70 and 50 shades, respectively. Ending finished goods inventory for June will be 65 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. 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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Transcribed Image Text:Shadee Corporation expects to sell 610 sun
shades in May and 340 in June. Each shade sells
for $140. Shadee's beginning and ending
finished goods inventories for May are 70 and 50
shades, respectively. Ending finished goods
inventory for June will be 65 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.
Required:
Prepare Shadee's May and June purchases
budget for the adjustable poles.
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