The folowing information apples to the questions displayed below guana, Inc, man

Question

The folowing information apples to the questions displayed below guana, Inc, manufactures bamboo picture frames that selt for $25 each Eech frome reqares 4 inear feet of bemboo, which costs $3.00 per f ot Each frame takes appraximately 30 minuees to buildl end the labor rate averages $12 per hout. lguane has the following invenbory policies . Ending finished goods inventory should be 40 percent of next month's sales Ending raw materiss inventory should be 30 percent of next month's production. Expected unit sales tframes) for the upcoing months follow March Aprit 320 390 490 June July August 575 Verisble manufacturing overheed is incurred at a nte of $0.20 per unit produced. Annual fxed anfcuing overbed is estmoted to be $7,200 $600 per monthi for expected production of 4,000 uns for the year following the sale paid during the month incurred. Monthly foed nufecturing ovethead includes $240 is cepreciation. During Aprl, Iguone plons to pay $2.000 tor a plece of Seling and administretive expenses are estimated at $650 per month pus $0.50 per unt sold iguana, Inc. had $10.500 cash on hand on April 1. Of its sales, 8O percent i in cosh Of the credit sales. So percent is collected duting the nonth of the sle and S0 percent is collected during the h Of raw materiels purchases, 80 percent is paild for during the month purchased and 20 percent is pald in the folowe mont Rw materiels purcheses for Mach totaled $2,000 A t for during the month purchased and 20 percent is pald i the folow 21.00 points Required: Compute the following for Iguane, inc, for the second quarter (April, May, and June) May S 8,5009760 97601220 30.500 1,270 5.778$ 15.690 2,8807,820 69 2.054 1. Budgeted Sales Revenue 3. Budgeted Cost of Raw Material Purchases S53405 | Budgeted Direct Labor Cost 6 Budgeted Cost ol Goods Sold . Total Budgeted Selling and Adm Expenses

Explanation / Answer

Selling Admin = No of units * .50 + 650

April May June Total Budgeted Sales Revenue 8500 9750 12250 30500 Budgeted Production in Units 360 430 480 1270 Budgeted cost of Rawmaterial 4572 5340 5778 15690 Budgeted Direct labor cost 2180 2580 2880 7640 Budgeted manufacturing overhead 672 686 696 2054 Budgedted Cost of Goods Sold 6800 7800 9800 24400 Total Budgeted selling and admin expense 820 845 895 2560

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