The information is at the top and the second is the question! Thank you! lguana,

Question

The information is at the top and the second is the question! Thank you!

lguana, Inc, manufactures bamhoo picture frames that sell for $25 each Fach frame requlres 4 linear feet of bamboo, which costs $200 per foot Fach frame takes appraximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has the following Inventory pollcles: Ending finished goods inventory should be 40 percent of next month's sales Ending raw materlals inventory should be 30 percent of next month's production Expected unlt sales (frames) for the upcoming months follow: March April May June July August 275 250 300 400 375 425 Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 (S600 per month) for expected production of 4,000 units for the year. Selling and administratve expenses are estimated at $650 per month plus $060 per unit sold Iguana, Inc., had $10,800 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. or raw materials purchases, 8 0 percent is paid during he month purchased and 20 percent is paid r the follow ng month Raw materials purchases or March to aled S2,000 All other operating costs ?e paid during the month incurred. Manthly fixed manufacturing overhead includes $150 in deprerng April, Iguana plans to pay $3,000 for a piece of equipment

Explanation / Answer

April May June 2nd Qarter Total Budgeted Sales Revenue 6250 7500 10000 23750 Cost of goods sold 4025 4830 6440 15295 Budgeted Gross margin 2225 2670 3560 8455 Budgeted Selling and Admin 800 830 890 2520 Budgeted net operating income 1425 1840 2670 5935 Per unit Direct Material 4*2. 8 2000 Direct labor 30/60*12 6 1500 Variable Overhead cost 0.3 75 Fixed Overhead Cost 7200/4000 1.8 450 Cost of Goods Sold 16.1 4025

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