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SB Exercise E8-5 to E8-10

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Shadee Corporation expects to sell 590 sun shades in May and 450 in June. Each shade sells for $146. Shadees beginning and ending finished goods inventories for May are 70 and 45 shades, respectively. Ending finished goods inventory for June will be 70 shades.

E8-6 (Algo) Preparing Direct Materials Purchases Budget [LO 8-3c, e]

Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30.

Required:

Prepare Shadees May and June purchases budget for the adjustable poles.