Shadee Corp. expects to sell 550 sun visors in May and 330 in June. Each visor sells for $22. Shadees beginning and ending finished goods inventories for May are 70 and 45 units, respectively. Ending finished goods inventory for June will be 60 units.

Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 31 closures on hand on May 1, 22 closures on May 31, and 23 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,500 per month, and variable manufacturing overhead is $2.00 per unit produced. Each visor takes 0.10 direct labor hours to produce and Shadee pays its workers $6 per hour.

• Selling costs are expected to be 7 percent of sales.
• Fixed administrative expenses per month total $1,300.

1. Determine Shadee's budgeted cost of closures purchased for May and June.

2. Determine Shadee's budget manufacturing overhead for May and June.

3. Determine Shadees budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $8.)

4. Compute the Shadees budgeted cost of goods sold for May and June.

5. Determine Shadee's budgeted selling and administrative expenses for May and June.

6. Complete Shadee's budgeted income statement for the months of May and June