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[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.)

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 5P: Selling and administrative expense budget and budgeted income statement Budgeted selling and...
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[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.)

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
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
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