[The following information applies to the questions displayed below.] Shadee Corporation expects to sell 600 sun shades in May and 800 in June. Each shade sells for $180. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. E8-10 (Static) Preparing Budgeted Income Statement [LO 8-3h] Each shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 poles in direct materials inventory on May 1, 80 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 $9 per hour. Additionally, Shadee's 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 6 percent of sales. • Fixed administrative expenses per month total $12,000. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. SHADEE CORPORATION Budgeted Income Statement Budgeted Sales Budgeted Cost of Goods Sold Budgeted Gross Margin Budgeted Net Operating Income May June

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 50E: Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces...
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SB Exercise E8-5 to E8-10
[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 600 sun shades in May and 800 in June. Each shade sells for $180. Shadee's
beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods
inventory for June will be 60 shades.
E8-10 (Static) Preparing Budgeted Income Statement [LO 8-3h]
Each shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have
120 poles in direct materials inventory on May 1, 80 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 $9 per hour. Additionally, Shadee's
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 6 percent of sales.
• Fixed administrative expenses per month total $12,000.
Required:
Prepare Shadee's budgeted income statement for the months of May and June.
Note: Do not round your intermediate calculations.
SHADEE CORPORATION
Budgeted Income Statement
Budgeted Sales
Budgeted Cost of Goods Sold
Budgeted Gross Margin
Budgeted Net Operating Income
May
June
Transcribed Image Text:SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 600 sun shades in May and 800 in June. Each shade sells for $180. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. E8-10 (Static) Preparing Budgeted Income Statement [LO 8-3h] Each shade requires a total of $40 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 poles in direct materials inventory on May 1, 80 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 $9 per hour. Additionally, Shadee's 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 6 percent of sales. • Fixed administrative expenses per month total $12,000. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. SHADEE CORPORATION Budgeted Income Statement Budgeted Sales Budgeted Cost of Goods Sold Budgeted Gross Margin Budgeted Net Operating Income May June
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