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The following information applies to the questions displayed below] guana, Inc.,. manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $2.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12 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: 280 260 310 410 385 435 March April May June July August Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,800 ($650 per month) for expected production of 3,000 units for the year Selling and administrative expenses are estimated at $700 per month plus $0.50 per unit sold Iguana, Inc.. had $10,900 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 percent is paid n the follo of raw materials purchases, 80 percent is paid or during the month purchased and 2 ing month. Ra materials purchases or Marc 1 taled . other operating costs are paid during the month incurred. Monthly fixed manufacturing overheed includes $160 in depreciation. During April, Iguana plans to pay $3,100 for a piece of equipment value: 33.33 points Required Compute the following for Iguana, Inc., for the second quarter (April, May, and June) 2nd Quarter Total May April June 1. Budgeted Sales Revenue 2. Budgeted Production in Units 3. Budgeted Cost of Raw Material Purchases 4. Budgeted Direct Labor Cost 5. Budgeted Manufacturing Overhead 6. Budgeted Cost of Goods Sold 7. Total Budgeted Selling and Adm. Expenses $ 7,8009,300$ 12,300$ 29,400 400 350 1,030 280 $ 1,680S 2,1002,400 6,180 790 $ S 4,9405,890$7,790$ 18,620 855 $ 8102,362 762$ 905$ 2,590.00 $ 830 S 2. vate value: 33.33 points Required: Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations and final answers to 2 decimal places.) IGUANA, INC Budgeted Income Statement For the Quarter Ending June 2nd Quarter Total April May June 0.00 S 0.00$ Budgeted Gross Margin 0.00 $ 0.00 0.00 S Budgeted Net Operating Income 0.00 $ 0.00 $ 0.00 33.34 points information Required: 1. Compute the budgeted cash receipts for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.) 2nd Quarter Budgeted Cash Receipts 7.86000 $ 1500 12,000.00 29,01000 2. Compute the budgeted cash payments for lguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.) 2nd Quarter Total Budgeted Cash Payments S 9,030.007,007.00$7,746.00 23,783.00 3. Prepare the cash budget for lguana. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum cash balance. (Leave no cell blank enter "O" wherever required. Round your answers to 2 decimal places.) 2nd Quarter Total S 10,900.0010,730.0011,873.0033,503.00 29,010.00 23,783.00 38,730.00 April May June Beginning Cash Balance Plus: Budgeted Cash Receipts Less: Budgeted Cash Payments Preliminary Cash Balance Cash Borrowed/Repaid Ending Cash Balano8 2.000.00 7.746.00 S 9,730.00 12,873.00 S 16,127.00 0.00 7.860.00 9,150.00 9,030.00 7.007.00 1,000.00 (1,000.00)

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