Shadee Corporation expects to sell 620 sun shades in May and 400 in June. Each shade sells for $151. Shadee's beginning and ending finished goods inventories for May are 80 and 40 shades, respectively. Ending finished goods inventory for June will be 65 shades. Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 poles in inventory on June 30. Required: Prepare Shadee's May and June purchases budget for the adjustable poles.
Shadee Corporation expects to sell 620 sun shades in May and 400 in June. Each shade sells for $151. Shadee's beginning and ending finished goods inventories for May are 80 and 40 shades, respectively. Ending finished goods inventory for June will be 65 shades. Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 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
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Transcribed Image Text:Shadee Corporation expects to sell 620 sun shades in May and 400 in June. Each shade sells
for $151. Shadee's beginning and ending finished goods inventories for May are 80 and 40
shades, respectively. Ending finished goods inventory for June will be 65 shades. Each shade
requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00
each. Shadee expects to have 120 in direct materials inventory on May 1, 100 poles in
inventory on May 31, and 120 poles in inventory on June 30. Required: Prepare Shadee's May
and June purchases budget for the adjustable poles.
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