The following information applies to the questions displayed below) lguana, Inc.

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The following information applies to the questions displayed below) lguana, Inc.,. manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which takes approximately 30 minutes to build, and the labor rate averages $12 per hour. lguana has the following inventory policles: 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 340 380 430 530 505 July August Variable manufacturing overhead is incurred at a rate of $0.20 per unit produced. Annual fixed manufacturing overhead is estimated to be $8,400 ($700 per month) for expected production of 6,000 units for the year. Selling and administrative expenses are estimated at $750 per month plus $0.50 per unit sold lguana, Inc., . had $14,800 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 $4,500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $280 in depreciation During April, Iguana plans to pay $4,300 for a piece of equipment. Required information 21.00 points 4

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April May June 2nd Qrtr Total 1 Budgeted Sales Revenue 9500 10750 13250 33500 2 Budgeted prodution in units 400 470 520 1390 3 Budgeted cost of raw material purchases 3368 3880 4148 11396 4 Budgeted Direct Labor Cost 2400 2820 3120 8340 5 Budgeted Manufacturing Overhead 780 794 804 2378 6 Budgeted Cost of goods sold 6380 7374 8084 21838 7 Budgeted Selling and Admn. Expenses 940 965 1015 2920

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