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SB Problem PA8-1 to PA8-3 [The following information applies to the questions displayed below) Iguana, Incorporated, manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $3.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $15 per hour Iguana has the following inventory policies. . Ending finished goods inventory should be 40 percent of next month's sales. Ending direct materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow: March April Hay June July August 355 410 460 560 535 SUS Variable manufacturing overhead is incurred at a rate of $0.50 per unit produced. Annual fixed manufacturing overhead is estimated to be $6,000 ($500 per month) for expected production of 3.000 units for the year. Selling and administrative expenses are estimated at $550 per month plus $0.50 per unit sold. Iguana, Incorporated, had $16.500 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 direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Direct materials purchases for March 1 totaled $5,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $310 in depreciation. During April, iguana plans to pay $4,500 for a piece of equipment PA8-1 (Algo) Preparing Operating Budgets [LO 8-3a, b, c, d, e, f, g] Required: Compute the following for iguana, Incorporated, for the second quarter (April, May, and June). 1 Budgeted Sales Revenue 2 Budgeted Production in Units 3 Budgeted Cost of Direct Material Purchases 4 Budgeted Direct Labor Cost 5 Budgeted Manufacturing Overhead 6. Budgeted Cost of Goods Sold 7 Total Budgeted Selling and Administrative Expense April May June 2nd Quarter Total $ $ SSSS 0 0 0 0 0 0 0

SB Problem PAB-1 to PAB-3 [The following information applies to the questions displayed below] Iguana, incorporated, manufactures bamboo picture frames that sell for 530 each. Each frame requires 4 anear feet of bamboo, which costs $3.00 per foot. Each frame takes approxamately 30 minutes to bulld, and the labor rate averages $15 per hout iguana has the following inventory policles. - Ending finstsed goods inventory should be 40 percent of next month is sales - Ending direct materials inventory should be 30 percent of next month's production Expected unit soles (frames) for the upcoming months follow: Variable manufacturing overhead is incurred at a rate of 50.50 per ung produced Annual ficed manufacturing overheod is estimated to be $6.000 (\$500 per monthi for expected production of 3.000 units for the year Seling and administrative expenses are estimsted ot $550 per month plus $0.50 per unit sold. Iguana, Incorporated, had $16.500 cash on hand on April 1 of ms sales, 80 percent is in cash of the credir saies, 50 Or direct matenais purchases, 80 percent is paid for durng the month purchased and 20 percent is paid in the following month. Direct matensis purchates for March i totaled 55.000 . All other operating costs are paid durng she month for a piece of equipment PA8-1 (Algo) Preparing Operating Budgets [LO 8-3a, b, c, d, e, f, g] Required: Required: Compute the following for lguana. incorporated, for the second quarter (Apnt, Moy, and Junel

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