Required information
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 570 sun visors in May and 300 in June. Each visor sells for $28. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.
Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 27 closures on hand on May 1, 21 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $1.00 per unit produced. Suppose that each visor takes 0.90 direct labor hours to produce and Shadee pays its workers $11 per hour.
Additional information:
Required:
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $3.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
What is the Budgeted Gross Margin for May and June?
What is the Budgeted Net Operating Income for May and June?
Shadee Corp. Budgeted Income Statement For The Month May and June |
||
May | June | |
Budgeted Sales | $15,960 (570*$28) | $8,400 (300*$28) |
Cost of goods sold: | ||
Direct material | 2,850 (570*$5) | 1,500 (300*$5) |
Direct labor | 5,643 (570*0.9*$11) | 2,970 (300*0.9*$11) |
Variable overhead | 570 | 300 |
Fixed overhead | 1,710 (570*$3) | 900 (300*$3) |
Cost of goods sold | 10,773 | 5,670 |
Budgeted Gross margin | 5,187 | 2,730 |
Selling and administrative expenses: | ||
Selling cost | 1,277 (15,960*8%) | 672 (8,400*8%) |
Administrative expenses | 1,700 | 1,700 |
Total selling and administrative expenses | 2,977 | 2,372 |
Budgeted Net operating income | $2,210 | $358 |
Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell...
Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 570 sun visors in May and 300 in June. Each visor sells for $28. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost...
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[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 630 sun visors in May and 440 in June. Each visor sells for $15. Shadee's beginning and ending finished goods inventories for May are 75 and 40 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50...
The following information applies to the questions displayed below.] Shadee Corp. expects to sell 630 sun visors in May and 440 in June. Each visor sells for $15. Shadee's beginning and ending finished goods inventories for May are 75 and 40 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50...
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[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 630 sun visors in May and 440 in June. Each visor sells for $15. Shadee's beginning and ending finished goods inventories for May are 75 and 40 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50...
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