SB Exercise E8-5 to E8-10

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Shadee Corporation expects to sell 600 sun shades in May and 410 in June. Each shade sells for $162. Shadees beginning and ending finished goods inventories for May are 70 and 50 shades, respectively. Ending finished goods inventory for June will be 50 shades.

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

Each shade requires a total of $60.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 80 poles in inventory on May 31, and 110 poles in inventory on June 30.

What is the budgeted cost of closures purchased for May and June?