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Shadee Corp. expects to sell 640 sun visors in May and 380 in June. Each visor sells for $20. Shadees beginning and ending finished goods inventories for May are 60 and 55 units, respectively. Ending finished goods inventory for June will be 55 units.

Each visor requires a total of $5.50 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 30 closures on hand on May 1, 21 closures on May 31, and 27 closures on June 30 and variable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $12 per hour. Additional information:

Selling costs are expected to be 6 percent of sales.

Fixed administrative expenses per month total $1,600.

Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.10.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

SHADEE CORP.
Budgeted Income Statement
	May	June
Budgeted Gross Margin
Budgeted Net Operating Income

There are 6 options avaible from the drop down list:

Budgeted Contribution Margin

Budgeted Interest Expense

Budgeted Sales

Budgeted Sales Returns and Allowances

Budgeted Selling and Administrative

Budgeted Cost of Goods Sold

SHADEE CORP.
Budgeted Income Statement
	May	June
Budgeted Contribution Margin
Budgeted Interest Expense
Budgeted Sales
Budgeted Sales Returns and Allowances
Budgeted Gross Margin
Budgeted Selling and Administrative Expenses
Budgeted Cost of Goods Sold
Budgeted Net Operating Income

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