Question

lguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $1.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $13 per hour. Iguana has the following inventory policies .Ending finished goods inventory should be 40 percent of next month's sales .Ending raw materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow: March April May June July August 345 390 440 540 515 565 Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 6,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sol lguana, Inc., had $15,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale Of raw materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Raw materials purchases for March 1 totaled $3,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $290 in depreciation During April, Iguana plans to pay $3,000 for a piece of equipment. Required: Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations and final answers to 2 decimal places.) IGUANA, INC Budgeted Income Statement For the Quarter Ending June April 2nd Quarter Total May June $ 7,800.00 S 8,800.00 S 10,800.00 S 27,400.00 Budgeted Sales Revenue Budgeted Cost of Goods Sold Budgeted Gross Margin Budgeted Selling and Administrative Expenses $ 7,800.00 S 8,800.00 S 10,800.00 S 27,400.00 (920.00) (2,635.00) (845.00) (870.00) Budgeted Net Operating Income S 6,955.00 S 7,930.00 S 9,880.00 S 24,765.00 Bu Required Tntormation Bu 345 390 440 540 515 565 March Bu April June Bu Lu August Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 6,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold Iguana, Inc., had $15,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale Of raw materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Raw materials purchases for March 1 totaled $3,000. All other operating costs are paid during the month incurred Monthly fixed manufacturing overhead includes $290 in depreciation. During April Iguana plans to pay $3,000 for a piece of equipment. he alue

Answer 1

Plaan hit LIKE button if this halped. Far any further planatian, plase put your quaryn commant, will gt back ta you. Budzetedsles Revenue: Total Budgets Sala unlt Gudgeted sellire price Budereted sales revenuc 1370.0 20.00 205 2000 520.c0 520. 520cO 20.00 6,900.00 7,800.D 3,300.00 $10300.00 $27,400.00 $10,300.00 $11,300.00 Cash Sale 0& In 5ame Month 7,710 $ 8,700 TolHl Budaets Sale units Toal Nced Budaeted Production 1.370 -155 -176 -216 1420 Sudgetsd Productiorn lctal rw Materal reeded l oral Need Budgeted Purchases Budgeted dollar purchases Budgeted cash Payment for Material 1,040 2,140 2.02 1,724 1.980 5,830 March Payable 80% in Same month 20% in t mcrch $2,000"2J⅔ 80% s 2,069 52,3765 2.552s s,996 S 517 S 594 두 1.111 S E38 Total Payment for Purchases 2,669 2893 3,145 3,707 Budaeted Cash Payment ymert for Materalドuenses ,6553,1 3,445 aable anufactunn overhesd 123144 cupment Total budgeted cash payment Budgeted Income statement: 59,6127,337 $ 7,979 $ 21,928 57,815 880 5 1,00 272a0 Icss: Cost of ods scld Ercss Mar aMablc 2,900 s 3,20. s 3,8co 9.300 195S 220S 270두 535 56505-550 5 -50 1,950 $2,055$ 2,330 5 2,8807,265 Budgeted Cost ofgoads sold ret Mlaterial unear feet $6,00/5,non units 14 0 1.an 5 14.0 4,900.0ฏ 5,600.00 7,000.00 두 15,800 s 13.338 s 15,261 두 15.3コ 57.7105 8705 10,60 27,010 5138985 17,2117.082 5 17,882 515,8915,261 S 17,882 17,882 cash payment: о.elim'raryC 5st' bsla..ce 9,612 S 337 S 7,979 Endine Cash Belence