Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Shadee Corporation expects to sell 550 sun shades in May and 320 in June. Each shade sells for ( $ 159 ). Shadee's beginning and

image text in transcribed
Shadee Corporation expects to sell 550 sun shades in May and 320 in June. Each shade sells for \\( \\$ 159 \\). Shadee's beginning and ending finished goods inventories for May are 70 and 55 shades, respectively. Ending finished goods inventory for June will be 65 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 \\( \\$ 5.00 \\) each. Shadee expects to have 130 in direct materlals 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 \\( \\$ 14 \\) per hour. Additionally, Shadee's fixed manufacturing overhead is \\( \\$ 11,000 \\) per month, and variable manufacturing overhead is \\( \\$ 11 \\) per unit produced. Additional information: - Selling costs are expected to be 8 percent of sales. - Fixed administrative expenses per month total \\( \\$ 1,700 \\). Required: Prepare Shadee's selling and administrative expense budget for May and June. Note: Do not round your intermediate calculations. Round your answers to \\( \\mathbf{2} \\) decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting 2007 FASB Update Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

12th Edition

0470128763, 978-0470128763

More Books

Students also viewed these Accounting questions