[The following information applies to the questions displayed below.] Iguana, In

Question

[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 production.

Expected unit sales (frames) for the upcoming months follow:

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 and administrative expenses are estimated at $650 per month plus $0.60 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 paid during the month incurred. Monthly fixed manufacturing overhead includes $150 in depreciation. During April, Iguana plans to pay $3,000 for a piece of equipment.

Required:

Compute the following for Iguana, Inc., for the second quarter (April, May, and June). (Do not round your intermediate calculations.)

Required:
Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations to 2 decimal places.)

I had previously asked the question but forgot to include the budgeted income statement part in the question not sure if the other results might help with filling out the balance sheet.

https://www.chegg.com/homework-help/questions-and-answers/following-information-applies-questions-displayed--iguana-inc-manufactures-bamboo-picture--q27610070

March 275 April 250 May 300 June 400 July 375 August 425

Explanation / Answer

Solution:-

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IGUANA INC. BUDGETED INCOME STATEMENT For the quarter ended june April May June 2nd qurter total Budgeted Sales Revenue 6,250 7,500 10,000 23,750 Budgeted Cost of Goods Sold 4,025 4,830 6,440 15,295 Budgeted Gross Margin 2,225 2,670 3,560 8,455 Budgeted Selling and Administrative Expenses 800 830 890 2,520 Budgeted Net Operating Income 1,425 1,840 2,670 5,935

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