(Could you try to keep it in the same format ish if thats possible) Iguana, Inc.
ID: 2432278 • Letter: #
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(Could you try to keep it in the same format ish if thats possible)
Iguana, 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 $15 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 $0.50 per unit produced. Annual fixed manufacturing overhead is estimated to be $9,000 ($750 per month) for expected production of 4,500 units for the year. Selling and administrative expenses are estimated at $850 per month plus $0.50 per unit sold.
Iguana, Inc., had $11,000 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 $3,700. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $270 in depreciation. During April, Iguana plans to pay $4,200 for a piece of equipment.
March 335 April 370 May 420 June 520 July 495 August 545 Required Compute the following for lguana, Inc., for the second quarter (April, May, and June). Quarter Total April May June $ 11,100 12,600 5,600 S 39,300 51001 1,360 $ 4,110 4,750 5,115S 13,975 $ 2,925$ 3,450 3,825 10,200 $ 9450$ 980?$ 1,005 $ 2,930 7,400 $ 8,4000$ 10,400 $ 26,200 $ 1,035$ 1,060 3,205.00 Budgeted Sales Revenue Budgeted Production in Units Budgeted Cost of Raw Material 460 2 3 4 5 6 7 390 Purchases Budgeted Direct Labor Cost Budgeted Manufacturing Overhead Budgeted Cost of Goods Sold Total Budgeted Selling and Adm ExpensesExplanation / Answer
3.
IGUANA, INC. Budgeted Income Statement For the Quarter Ending June April May June 2nd Quarter Total Budgeted Sales revenue 11100.00 12600.00 15600.00 39300.00 Budgeted Cost of goods sold 7400.00 8400.00 10400.00 26200.00 Budgeted Gross Margin 3700.00 4200.00 5200.00 13100.00 Budgeted Selling and Administrative Expenses 1035.00 1060.00 1110.00 3205.00 Budgeted Net Operating Income 2665.00 3140.00 4090.00 9895.00Related Questions
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