Shadee Corporation expects to sell 540 sun shades in May and 310 in June. Each shade sells for $166. Shadees beginning and ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory for June will be 60 shades.

Each shade requires a total of $65.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 120 poles in inventory on June 30.

Prepare Shadees May and June purchases budget for the adjustable poles.

	May	June
MayJuneBudgeted Cost of Closures Purchase

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 $11,000 per month, and variable manufacturing overhead is $12 per unit produced.

Prepare Shadees direct labor budget for May and June.

	May	June
Budgeted Direct Labor Cost

Prepare Shadees manufacturing overhead budget for May and June.

	May	June
Budgeted manufacturing overhead

Each shade requires a total of $65.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 120 poles in inventory on June 30.

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 $11,000 per month, and variable manufacturing overhead is $12 per unit produced.

Determine Shadees budgeted manufacturing cost per shade. (Note: Assume that fixed overhead per unit is $20.)

manufacturing cost per unit

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

	May	June
budgeted cost of goods sold

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

	May	June
budgeted selling and administrative expenses

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

budgeted income statement
	May	June
budgeted gross margin
budgeted net operating income