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

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Shadee Corporation expects to sell $590$ sun shades in May and $350$ in June. Each shade sells for $$161.$ Shadee$$s beginning and ending finished goods inventories for May are $80$ and $55$ shades, respectively. Ending finished goods inventory for June will be $60$ shades.

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

Each shade requires a total of $$60\mathrm{.}00$ in direct materials that includes $4$ adjustable poles that cost $$10\mathrm{.}00$ each. Shadee expects to have $120$ 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 $$14$ per hour. Additionally, Shadee$$s fixed manufacturing overhead is $$10,000$ per month, and variable manufacturing overhead is $$12$ per unit produced.

Additional information:

Selling costs are expected to be $9$ percent of sales.

Fixed administrative expenses per month total $$1,500.$

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.