Shadee Corporation expects to sell 520 sun shades in May and 420 in June. Each shade sells for $147. Shadees beginning and ending finished goods inventories for May are 75 and 40 shades, respectively. Ending finished goods inventory for June will be 65 shades.

Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadees fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $14 per unit produced.

Required:

1. Prepare Shadees direct labor budget for May and June. Budget direct labor cost May? June?

2. Prepare Shadees manufacturing overhead budget for May and Jun Budgeted manufacturing overhead May? June?

Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30.

required:

1. Determine Shadees budgeted manufacturing cost per shade. (Note: Assume that fixed overhead per unit is $12.)

Manufacturing cost per unit?

2. Prepare Shadees budgeted cost of goods sold for May and June.

Budgeted cost of goods sold?

Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadees fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $14 per unit produced.

Additional information:

* Selling costs are expected to be 7 percent of sales.

* Fixed administrative expenses per month total $1,400.

Required:

Prepare Shadees selling and administrative expense budget for May and June.

Budgeted selling and administrative expenses: May? June?

Additional information: * Selling costs are expected to be 7 percent of sales.

* Fixed administrative expenses per month total $1,400.

Required:

Prepare Shadees budgeted income statement for the months of May and June.

Shadee corporation Budgeted income statement