The questions in picture 2 are based on the information on picture 1. The follow

Question

The questions in picture 2 are based on the information on picture 1.
The following informadlon applies to the questions displayed below.) averages $1t per hour. Iguana has the following inventory policies Ending finished goods inventory should be 40 perceet of next month's sales overhead is incurred at a rase of $0.60 per unit produced. Annual foxed manufacturing overhead is estimated to be $7.200 ($600 per month) for expected productsion of 3,000 units for the year ts sales, 80 percent is in cesh. Of the credt sales, 50 percent is colected during the month of the sale, and 50 percent is colected during the month following the fowed manufacturing overhead includes $180 in depreciation. During April, lguana plans to pay $3,300 for a piece of equipment

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ans 1) April May June Qtr ans aBudgeted cash receipts 7025 8125 10500 25650 Budgeted cash payments Total cash disbursements for Purchases 1737.6 2798.4 3436.48 7972.48 Direct labor 1298 2035 2310 5643 Budgeted Cash Manufacturing overhead 561.6 642 672 1875.6 Selling and Administrative expenses 840 865 915 2620 Purchases of Equipment 3300 3300 Ans 2 Budgeted cash payments 7737.2 6340.4 7333.48 21411.08 ans 3 April May June Qtr beginning Cash Balance 11100 10387.8 12172.4 11100 Add: Budgeted cash receiots 7025 8125 10500 25650 Less: Budgeted cash paymnets 7737.2 6340.4 7333.48 21411.08 Preliminary cash balance 10387.8 12172.4 15338.92 15338.92 Cash borrowed 0 0 0 0 Ending cash balance 10387.8 12172.4 15338.92 15338.92 workings April May June 2nd Qtr total Budgeted sales 280 330 430 1040 Selling price $25 $25 $25 $25 Budgeted sales revenue S $7,000 $8,250 $10,750 $26,000 Credit sales (20%*S) $1,400.0 $1,650.0 $2,150.0 $5,200.0 Budgeted cash receipts Cash sales (80%*S) $5,600 $6,600 $8,600 $20,800 From accounts receivable (290*25*20%*50%) 725 725 From April sales (1400*50%. 50%) 700 700 1400 From May sales (1650*50%,50%) $825.0 $825.0 1650 From June sales $1,075.0 1075 ans aBudgeted cash receipts $7,025 $8,125 $10,500 $25,650 Production Budget April May June Qtr July Aug expected sales in units 280 330 430 1040 405 455 Add Desired Ending Inventory (40%*next month sales) 132 172 162 162 246 Total Needs 412 502 592 1202 651 Less Beginning Inventory 176 132 172 176 162 (280*40%) Budgeted production in units 236 370 420 1026 489 Direct material Purchase Budget April May June Qtr July Budgeted cost of raw material purchases Budgeted production in units 236 370 420 1026 489 No. of linear feet bamboo required 4 4 4 4 4 Total required 944 1480 1680 4104 1956 Add Desired Ending Inventory (30%*next month production) 444 504 587 587 Total Needs 1388 1984 2267 4691 Less Beginning Inventory 552 444 504 552 (944*30%) Raw material required to be purchases 836 1540 1763 4139 Cost of raw material $2 $2 $2 $2 Budgeted cost of raw material purchases $1,672 $3,080 $3,526 $8,278 Schedule of cash disbursements for Purchases From Accounts payable (2000*20%) 400 400 From April purchases (1672*80%, 20%) $1,337.60 $334.40 1672 From May ourchases $2,464.0 $616.0 3080 From June Purchases $2,820 $2,820 Total cash disbursements for Purchases 1737.6 2798.4 3436.48 7972.48 April May June Qtr Budgeted production in units 236 370 420 1026 Time required 0.5 0.5 0.5 0.5 Direct labor hours required D 118 185 210 513 Labor rate L 11 11 11 11 Direct labor cost D*L 1298 2035 2310 5643 Budgeted Manufacturing overhead Budgeted production in units 236 370 420 1026 Variable overhead per unit 0.6 0.6 0.6 0.6 Total variable overhead 141.6 222 252 615.6 Add: fixed manufacturing overhead 600 600 600 1800 Budgeted Manufacturing overhead 741.6 822 852 2415.6 Less: depreciation 180 180 180 540 Budgeted Cash Manufacturing overhead 561.6 642 672 1875.6 Selling and Administrative expenses Budgeted sales 280 330 430 1040 Variable rate per unit 0.5 0.5 0.5 0.5 Total variable overhead 140 165 215 520 Add: fixed 700 700 700 2100 Selling and Administrative expenses 840 865 915 2620

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