[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
Additional information:
- Selling costs are expected to be 8 percent of sales.
- Fixed administrative expenses per month total $1,400.
Required:
Complete Shadee's
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F934895e0-d973-4945-81e2-fdb610655130%2F8fd1ad84-87ba-412b-989b-8d683743a9c6%2Fdqj1nvq_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)