[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 650 sun visors in May and 430 in June. Each visor sells for $19. Shadee’s beginning and ending finished goods inventories for May are 80 and 45 units, respectively. Ending finished goods inventory for June will be 70 units. Each visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 22 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.60 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 $1,400. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.90.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 650 sun visors in May and 430 in June. Each visor sells for $19. Shadee’s beginning and ending finished goods inventories for May are 80 and 45 units, respectively. Ending finished goods inventory for June will be 70 units. Each visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 22 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.60 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 $1,400. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.90.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 650 sun visors in May and 430 in June. Each visor sells for $19. Shadee’s beginning and ending finished goods inventories for May are 80 and 45 units, respectively. Ending finished goods inventory for June will be 70 units. Each visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 22 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.60 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 $1,400. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.90.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 650 sun visors in May and 430 in June. Each visor sells for $19. Shadee’s beginning and ending finished goods inventories for May are 80 and 45 units, respectively. Ending finished goods inventory for June will be 70 units.
Each visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 22 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.60 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 $1,400.
Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.90.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
Transcribed Image Text:**SHADEE CORP.**
**Budgeted Income Statement**
| | May | June |
|------------------------------|-------------|------------|
| **Budgeted Cost of Goods Sold** | | |
| **Budgeted Sales** | $12,350.00 | $8,170.00 |
| **Budgeted Gross Margin** | | |
| **Budgeted Selling and Administrative Expenses** | | |
| **Budgeted Net Operating Income** | | |
This table represents the budgeted income statement for SHADEE CORP. for the months of May and June. It includes budgeted values for sales, as well as placeholders for the cost of goods sold, gross margin, selling and administrative expenses, and net operating income. The actual amounts for these categories are not provided.
Definition Definition Basic financial report that forecasts estimated profits, revenue, and expenses for the company in the coming year or months. Budgeted income statements are helpful for companies in planning for the future, making better decisions, and allocating available resources more effectively and efficiently.
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