Shadee Corp. expects to sell 640 sun visors in May and 360 in June. Each visor sells for $23. Shadees beginning and ending finished goods inventories for May are 80 and 55 units, respectively. Ending finished goods inventory for June will be 65 units.

Additional information:

• Selling costs are expected to be 12 percent of sales.
• Fixed administrative expenses per month total $1,400.

Required:

4. Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.

	May	June
Budgeted Selling and Administrative Expenses

___________________________________________________________________________________________________

Shadee Corp. expects to sell 640 sun visors in May and 360 in June. Each visor sells for $23. Shadees beginning and ending finished goods inventories for May are 80 and 55 units, respectively. Ending finished goods inventory for June will be 65 units.

Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 29 closures on hand on May 1, 18 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $1.75 per unit produced. Suppose that each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $11 per hour.

Additional information:

• Selling costs are expected to be 12 percent of sales.
• Fixed administrative expenses per month total $1,400.

Required:

5. Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $3.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

SHADEE CORP.
Budgeted Income Statement
	May	June
Budgeted Gross Margin
Budgeted Net Operating Income