[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. ! Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $1.75 per unit produced. Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $8 per hour. Additional information: Selling costs are expected to be 8 percent of sales. Fixed administrative expenses per month total $1,300. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $4.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal p
[The following information applies to the questions displayed
below.]
Shadee Corp. expects to sell 630 sun visors in May and 410 in
June. Each visor sells for $24. Shadee’s beginning and ending
finished goods inventories for May are 75 and 45 units,
respectively. Ending finished goods inventory for June will be 60
units.
!
Each visor requires a total of $4.00 in direct materials that includes an adjustable
closure that the company purchases from a supplier at a cost of $1.50 each. Shadee
wants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closures
on June 30 and variable manufacturing
Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays
its workers $8 per hour.
Additional information:
Selling costs are expected to be 8 percent of sales.
Fixed administrative expenses per month total $1,300.
Required:
Complete Shadee's
(Note: Assume that fixed overhead per unit is $4.00.) (Do not round your
intermediate calculations. Round your answers to 2 decimal p
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