Shadee Corp. expects to sell 620 sun visors in May and 410 in June. Each visor sells for $26. Shadees beginning and ending finished goods inventories for May are 85 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.

E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]

Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 32 closures on hand on May 1, 22 closures on May 31, and 22 closures on June 30 and variable manufacturing overhead is $1.75 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $11 per hour.

Additional information:

• Selling costs are expected to be 7 percent of sales.
• Fixed administrative expenses per month total $1,200.

Required:

Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $5.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)