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, ation.comhrntpx?-=0.8519044522240348,1520227242 110% Q,Search geted Income Sta

ID: 2539575 • Letter: #

Question

, ation.comhrntpx?-=0.8519044522240348,1520227242 110% Q,Search geted Income Statement [LO 8-3h] f $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2. on May 1 17 clneuree n Mau 31 and DR clnesrae nn ina 2n and variahla manufactirina nuarhaarl ie 2.00 per unit prod r hours Required Information pected e expen SB Exercise E8-5 to E8-10 50.) (Do not round The following information applies to the questions displayed below.] r answe Shadee Corp. expects to sell 640 sun visors in May and 420 in June. Each visor sells for $15. Shadee's beginning and ending finished goods inventories for May are 80 and 55 units, respectively Ending finished goods inventory for June will be 70 units udgeted Income PrtScn Home End PgUp

Explanation / Answer

SHADEE CORP. Budgeted Income Statement May June Units 640 420 Budgeted Sales @ $15 $9,600.00 $6,300.00 Less: Cost of goods sold @ $9.80 (see below) -$6,272.00 -$4,116.00 Budgeted Gross Margin $3,328.00 $2,184.00 Less: Budgeted selling and administrative Expenses -$2,260.00 -$1,930.00 Budgeted Net Operating Income $1,068.00 $254.00 Budgeted manufacturing cost per unit Cost per Unit Direct material $3.50 Total direct labor (.30 hrs each X $9.00 per hour) $2.70 Variable manufacturing overhead $2.00 Fixed manufacturing overhead $1.60 Manufacturing cost per unit $9.80 Budgeted selling and administrative Expenses May June Sales $9,600.00 $6,300.00 Variable selling and administrative rate x 10% x 10% Variable selling and administrative expenses $960.00 $630.00 Fixed selling and administrative expenses 1300 1300 Budgeted selling and administrative expenses $2,260.00 $1,930.00