Shadee Corp. expects to sell 550 sun visors in May and 320 in June. Each visor...

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Shadee Corp. expects to sell 550 sun visors in May and 320 inJune. Each visor sells for $21. Shadee’s beginning and endingfinished goods inventories for May are 60 and 45 units,respectively. Ending finished goods inventory for June will be 60units.
Each visor requires a total of $3.50 in direct materials thatincludes an adjustable closure that the company purchases from asupplier at a cost of $2.00 each. Shadee wants to have 27 closureson hand on May 1, 21 closures on May 31, and 22 closures on June 30and variable manufacturing overhead is $1.75 per unit produced.Suppose that each visor takes 0.70 direct labor hours to produceand Shadee pays its workers $7 per hour. Additional information:Selling costs are expected to be 12 percent of sales. Fixedadministrative expenses per month total $1,600.
1. Required: Complete Shadee's budgeted income statement for themonths of May and June. (Note: Assume that fixed overhead per unitis $3.00.)

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Shadee Corporation Budgeted Income Statement For the Month of May and June Particulars May June Total Sales Revenue 11550 6720 18270 Less Cost of Goods Sold 723250 4208 1144050 Gross Profit 431750 2512 See Answer

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