The following information applies to the questions displayed below.] Shadee Corporation expects to sell 550...
70.2K
Verified Solution
Link Copied!
Question
Accounting
The following information applies to the questions displayed below.] Shadee Corporation expects to sell 550 sun shades in May and 380 in June. Each shade sells for $153. Shadees beginning and ending finished goods inventories for May are 75 and 55 shades, respectively. Ending finished goods inventory for June will be 65 shades.
Each shade requires a total of $65.00 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 $13 per hour. Additionally, Shadees fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $11 per unit produced.
Additional information:
Selling costs are expected to be 7 percent of sales.
Fixed administrative expenses per month total $1,200.
Required:
Prepare Shadees 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 & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
