Shadee Corporation expects to sell 580 sun shades in May and 360 in June. Each shade sells for $140. Shadees beginning and ending finished goods inventories for May are 85 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades.

Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 100 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 $10,000 per month, and variable manufacturing overhead is $13 per unit produced.

Additional information:

Selling costs are expected to be 10 percent of sales.

Fixed administrative expenses per month total $1,500.

Required:

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

Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.