Required information [The following information applies to the questions displayed below] Shadee Corporation expects to sell 610 sun shades in May and 400 in June. Each shade sells for $147 Shadee's beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 55 shades Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 100 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 $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $12,000 per month, and variable manufacturing overhead is $10 per unit produced. Additional information: Selling costs are expected to be 11 percent of sales. ⚫Fixed administrative expenses per month total $1,400. 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. Budgeted Gross Margin Budgeted Net Operating Income SHADEE CORPORATION Budgeted Income Statement May Juna
Required information [The following information applies to the questions displayed below] Shadee Corporation expects to sell 610 sun shades in May and 400 in June. Each shade sells for $147 Shadee's beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 55 shades Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 100 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 $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $12,000 per month, and variable manufacturing overhead is $10 per unit produced. Additional information: Selling costs are expected to be 11 percent of sales. ⚫Fixed administrative expenses per month total $1,400. 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. Budgeted Gross Margin Budgeted Net Operating Income SHADEE CORPORATION Budgeted Income Statement May Juna
Chapter7: Budgeting
Section: Chapter Questions
Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...
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![Required information
[The following information applies to the questions displayed below]
Shadee Corporation expects to sell 610 sun shades in May and 400 in June. Each shade sells for $147. Shadee's
beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods
inventory for June will be 55 shades.
Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to
have 130 in direct materials inventory on May 1, 100 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 $15 per hour. Additionally, Shadee's
fixed manufacturing overhead is $12,000 per month, and variable manufacturing overhead is $10 per unit produced.
Additional information:
Selling costs are expected to be 11 percent of sales.
Fixed administrative expenses per month total $1,400.
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.
Budgeted Gross Margin
Budgeted Net Operating Income
SHADEE CORPORATION
Budgeted Income Statement
May
June](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7e32729-94d8-46a0-927e-66c0c1310ed7%2Fa9f19e88-6124-43f7-a030-85e095228add%2F4kverj3_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below]
Shadee Corporation expects to sell 610 sun shades in May and 400 in June. Each shade sells for $147. Shadee's
beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods
inventory for June will be 55 shades.
Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to
have 130 in direct materials inventory on May 1, 100 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 $15 per hour. Additionally, Shadee's
fixed manufacturing overhead is $12,000 per month, and variable manufacturing overhead is $10 per unit produced.
Additional information:
Selling costs are expected to be 11 percent of sales.
Fixed administrative expenses per month total $1,400.
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.
Budgeted Gross Margin
Budgeted Net Operating Income
SHADEE CORPORATION
Budgeted Income Statement
May
June
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