c | Dezto.mheducation.com/hm.tpx [The following information applies to the quest

Question

c | Dezto.mheducation.com/hm.tpx [The following information applies to the questions displayed below] Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 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 pr Expected unit sales (frames) for the upcoming months follow 275 250 300 400 375 425 March April June 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 4,000 units for the year Selling a nd administrative 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. 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 $2.000. All other operating costs are pald during the month incurred. Monthly fixed manufacturing overhead includes $150 in depreciation. During April, Iguana plans to pay $3,000 for a plece of equipment

Explanation / Answer

Answer April May June 2nd Quarter Total Budgeted sales Revenue (in $) 6250 7500 10000 23750 Budgeted production in units 270 340 390 1000 Budgeted cost of Raw Material Purchase (in $) 2328 2840 3132 8300 Budgeted Direct Labour cost (in $) 1620 2040 2340 6000 Budgeted Manufacturing Overhead (In $) 681 702 717 2100 Budgeted cost of goods sold (in $) 4131 4819 6335 15285 Total budgeted selling & admin exp.in $ 800 830 890 2520 Working Sales March April May June July August Sales in units 275 250 300 400 375 425 Selling rate per unit in $ 25 25 25 25 25 25 Sales in $ 6875 6250 7500 10000 9375 10625 Production March April May June July August Sales in units 275 250 300 400 375 425 Ending Inventory 100 120 160 150 170 Opening Inventory 100 120 160 150 Production 270 340 390 395 Raw material purchase March April May June July August Raw material requirement-linear 1080 1360 1560 1580 (in feets) Ending Raw material inventory 324 408 468 474 Opening Raw Material Inventory 324 408 468 Purchase of Raw Material 1164 1420 1566 Cost per foot in $ 2 2 2 Raw material purchase in $ 2328 2840 3132 Direct Labour cost March April May June July August Production in units 270 340 390 395 time required per unit in minutes 30 30 30 30 Total time required in minutes 8100 10200 11700 11850 Total time required in hours 135 170 195 197.5 Labour Rate per hour in $ 12 12 12 12 Direct Labour cost in $ 1620 2040 2340 2370 Manufacturing Overhead cost March April May June July August Production in units 270 340 390 395 Variable MFG OH cost per unit in $ 0.3 0.3 0.3 0.3 Total Variable MFG OH Cost in $ 81 102 117 118.5 Fixed MFG OH cost in $ 600 600 600 600 Total MFG Overhead cost 681 702 717 718.5 Budgeted selling and admin cost March April May June July August Sales in units 275 250 300 400 375 425 Variable Selling & admin cost per unit in $ 0.6 0.6 0.6 0.6 0.6 0.6 Variable Selling & admin cost in $ 165 150 180 240 225 255 Fixed selling & admin cost in $ 650 650 650 650 650 650 Total selling & admin cost 815 800 830 890 875 905 Cost of goods sold April May June Raw Materail requirment for production 1080 1360 1560 Cost per foot in $ 2 2 2 Raw material consumption in $ 2160 2720 3120 Direct Labour cost in $ 1620 2040 2340 Total MFG Overhead cost in $ 681 702 717 Total Factory cost in $ 4461 5462 6177 Total production in units 270 340 390 Cost per unit in $ 16.52222 16.06471 15.83846154 Sales in units 250 300 400 Cost of goods sold in $         4,131         4,819                            6,335

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