[The following information applies to the questions displayed below.] Shadee Corporation expects to sell 530 sun shades in May and 350 in June. Each shade sells for $146. Shadee's beginning and ending finished goods inventories for May are 65 and 45 shades, respectively. Ending finished goods inventory for June will be 55 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 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $11 per unit produced. Additional information: • Selling costs are expected to be 9 percent of sales. • Fixed administrative expenses per month total $1,600. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. > Answer is complete but not entirely correct. Budgeted Sales Budgeted Cost of Goods Sold SHADEE CORPORATION Budgeted Income Statement May June $ 77,380.00 $ 51,100.00 $ 66,650.00 $ 47,750.00 × Budgeted Gross Margin Budgeted Selling and Administrative Expenses $ 10,730.00 $ 3,350.00 X $ 6,964.00 $ 4,599.00 Budgeted Net Operating Income $ 2,166.00 $ 2,849.00
[The following information applies to the questions displayed below.] Shadee Corporation expects to sell 530 sun shades in May and 350 in June. Each shade sells for $146. Shadee's beginning and ending finished goods inventories for May are 65 and 45 shades, respectively. Ending finished goods inventory for June will be 55 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 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $11 per unit produced. Additional information: • Selling costs are expected to be 9 percent of sales. • Fixed administrative expenses per month total $1,600. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. > Answer is complete but not entirely correct. Budgeted Sales Budgeted Cost of Goods Sold SHADEE CORPORATION Budgeted Income Statement May June $ 77,380.00 $ 51,100.00 $ 66,650.00 $ 47,750.00 × Budgeted Gross Margin Budgeted Selling and Administrative Expenses $ 10,730.00 $ 3,350.00 X $ 6,964.00 $ 4,599.00 Budgeted Net Operating Income $ 2,166.00 $ 2,849.00
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
Related questions
Question
Dineshbhai
![[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 530 sun shades in May and 350 in June. Each shade sells for $146. Shadee's
beginning and ending finished goods inventories for May are 65 and 45 shades, respectively. Ending finished goods
inventory for June will be 55 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 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's
fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $11 per unit produced.
Additional information:
• Selling costs are expected to be 9 percent of sales.
• Fixed administrative expenses per month total $1,600.
Required:
Prepare Shadee's budgeted income statement for the months of May and June.
Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.
> Answer is complete but not entirely correct.
Budgeted Sales
Budgeted Cost of Goods Sold
SHADEE CORPORATION
Budgeted Income Statement
May
June
$ 77,380.00 $ 51,100.00
$ 66,650.00 $ 47,750.00 ×
Budgeted Gross Margin
Budgeted Selling and Administrative Expenses
$ 10,730.00 $ 3,350.00 X
$ 6,964.00 $ 4,599.00
Budgeted Net Operating Income
$ 2,166.00 $ 2,849.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b1a7fb7-71fe-4b0e-ac42-c822eda201fd%2F2f29bd18-dd6d-4b57-9ea7-d835b8988a6d%2F8vj2oa8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 530 sun shades in May and 350 in June. Each shade sells for $146. Shadee's
beginning and ending finished goods inventories for May are 65 and 45 shades, respectively. Ending finished goods
inventory for June will be 55 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 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's
fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $11 per unit produced.
Additional information:
• Selling costs are expected to be 9 percent of sales.
• Fixed administrative expenses per month total $1,600.
Required:
Prepare Shadee's budgeted income statement for the months of May and June.
Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.
> Answer is complete but not entirely correct.
Budgeted Sales
Budgeted Cost of Goods Sold
SHADEE CORPORATION
Budgeted Income Statement
May
June
$ 77,380.00 $ 51,100.00
$ 66,650.00 $ 47,750.00 ×
Budgeted Gross Margin
Budgeted Selling and Administrative Expenses
$ 10,730.00 $ 3,350.00 X
$ 6,964.00 $ 4,599.00
Budgeted Net Operating Income
$ 2,166.00 $ 2,849.00
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning