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Part $6$ of $6$

Required information

SB Exercise E$8-5$ to E$8-10$

$[$The following information applies to the questions displayed below.$]$

$2\mathrm{.}28$ points

Shadee Corporation expects to sell $580$ sun shades in May and $400$ in June. Each shade sells for $$146.$ Shadee's beginning and ending finished goods inventorles for May are $65$ and $55$ shades, respectively. Ending finished goods inventory for June will be $60$ shades.

E$8-10($Algo$)$ Prep$$ring Budgeted Income Statement $[$LO $8-3$h$]$

Each shade requires a total of $$55\mathrm{.}00$ in direct materlals that includes $4$ adjustable poles that cost $$10\mathrm{.}00$ each. Shadee expects to have $130$ in direct materials inventory on May $1,80$ poles in inventory on May $31,$ and $120$ 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 $$13$ per unit produced.

Additional information:

Selling costs are expected to be $7$ percent of sales.

Fixed administrative expenses per month total $$1,700.$

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.