What is left blank i dont understand. Please Help! (The following infomation app

Question

What is left blank i dont understand. Please Help!

(The following infomation applies to the questions olisolayed below.j Iguana, Inc., manufactures bamboo picture frames thet se for S30 each. Cach frame requires 1 lineer feet of bamboo, which costs $3.50 per foot Cach frame tekes approximately 30 minutes to build, and the labor rate everages $12 per hour. Louane has the following inventory policies: • Ending finished goods inventory should be 40 percent of next month's sales • Eridirig raw materials invertory should be 30 perceril of next months productiuni. Cxpected unit sales (frames) for the upcoming months follow. March 005 May Junc August 485 Variable manufecturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7.200 15500 per month) for expected production of 4,500 units for the year. Selling and administrative expenses are estimated at SGGO por month plus $0.50 per unit sold guens, Inc., had $13,600 cash on hand on April 1. Of its seles, 80 percent is in cesh. 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 $3,600. All other operating costs are paid cluring the month incurred Monthly fixed manufacturing overhead includes S210 in depreciation. During April, Iguana plans to pay $3 600 for a piece of equipment

Explanation / Answer

Calculation of budgeted cost of sales

Budgeted manufacturing costs Per unit $

Direct material(4 ft * 3.5) 14

Direct labour (0.5 hrs * 12) 6

Variable manufacturing overhead 0.4

Fixed manufacturing overhead.   

(7200/4500). 1.6

Budgeted manufacturing costs per unit. 22.0

April. May. June. 2nd quarter total

Budgeted sales. 310 360 460 1130

Budgeted manufa-

cturing costs p. u. 22 22 22 22

Budgeted costs

Of goods sold. 6820 7920 10120 24860

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