Shadee Corporation expects to sell 620 sun shades in May and 330 in June. Each shade sells for $158. Shadee's beginning and ending finished goods inventories for May are 75 and 40 shades, respectively. Ending finished goods inventory for June will be 60 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 $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. Required: Prepare Shadee's May and June purchases budget for the adjustable poles. Budgeted Cost of Poles Purchased May June

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Shadee Corporation expects to sell 620 sun shades in May and 330 in June. Each shade sells for $158. Shadee's
beginning and ending finished goods inventories for May are 75 and 40 shades, respectively. Ending finished goods
inventory for June will be 60 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 $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.
Required:
Prepare Shadee's May and June purchases budget for the adjustable poles.
Budgeted Cost of Poles Purchased
May
June
Transcribed Image Text:Shadee Corporation expects to sell 620 sun shades in May and 330 in June. Each shade sells for $158. Shadee's beginning and ending finished goods inventories for May are 75 and 40 shades, respectively. Ending finished goods inventory for June will be 60 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 $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. Required: Prepare Shadee's May and June purchases budget for the adjustable poles. Budgeted Cost of Poles Purchased May June
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