Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 580 sun shades in May and 350 in June.

image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 580 sun shades in May and 350 in June. Each shade sells for $158. Shadee's beginning and ending finished goods inventories for May are 85 and 45 shades, respectively. Ending finished goods inventory for June will be 65 shades. Each shade requires a total of $60.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 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 $11,000 per month, and variable manufacturing overhead is $11 per unit produced. Additional information: - Selling costs are expected to be 8 percent of sales. - Fixed administrative expenses per month total $1,500. Required: Prepare Shadee's selling and administrative expense budget for May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. mrquirnes leformation inveatary for June wili be 65 thates. Each thede requeres af fote of 56000 in Grect materiaib trat inclutes 4 adjustable poles that cont 55.00 cach 5 Sefee eapects to Suppose that eech phade takrs three diect labor hour to proouce and 5hadee pay as aoriers 314 per hour Adabonally. Shagee'? fied inmoutacturing oveitiead is In ooo per month, and variable manulactumg overbead is 511 per unt produced Adaienal informition: * Sening cost are expected so be 8 percent of aiet. - Fired adminintrative expenses per morth total StSoo. Phectuired: Arecare Shacees budgeted income statement for the montha of May and June. Notei De not round your intermediate calculations. Asund your answers to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Virtual Remote Audit From Planning To Implementation

Authors: Roland Scherb

2nd Edition

3754301667, 978-3754301661

More Books

Students also viewed these Accounting questions

Question

6. Identify seven types of hidden histories.

Answered: 1 week ago

Question

What is human nature?

Answered: 1 week ago