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Shadee Corporation expects to sell 530 sun shades in May and 400 in June. Each shade sells for $158. Shadee's beginning and ending finished goods
Shadee Corporation expects to sell 530 sun shades in May and 400 in June. Each shade sells for $158. Shadee's beginning and ending finished goods inventories for May are 75 and 45 shades, respectively. Ending finished goods inventory for June will be 70 shades. E8-9 (Algo) Preparing Selling and Administrative Expense Budget [LO 8-3g] Each shade requires a total of $60.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 120 in direct materials inventory on May 1,100 poles in inventory on May 31 , and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally. Shadee's fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $14 per unit produced: Additional information: - Selling costs are expected to be 7 percent of sales. - Fixed administratlve expenses per month total $1,400. - Selling costs are expected to be 7 percent of sales. - Fixed administrative expenses per month total $1,400. 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
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