Finish off this Budgeted Income Statement: Iguana. Inc., manufactures bamboo pic
ID: 2475663 • Letter: F
Question
Finish off this Budgeted Income Statement:
Iguana. Inc., manufactures bamboo picture frames that sell for $22 each. Each frame requires 3 linear feet of bamboo, which costs $1.50 per foot. Each frame takes approximately 36 minutes to build, and the labor rate averages $9.00 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 30 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:Explanation / Answer
IGUANA INC Budgeted Income Statement For the quarter ending June April May June 2nd Quarter Total Budgeted Sales revenue 5,500.00 6,820.00 9,020.00 21,340.00 Budgeted Cost of goods sold 2,977.40 3,691.98 4,882.94 11,552.33 Budgeted Gross Margin 2,522.60 3,128.02 4,137.06 9,787.67 Budgeted Selling and Administrative Expenses 795.00 825.00 875.00 2,495.00 Budgeted Net operating Income 1,727.60 2,303.02 3,262.06 7,292.67 Budgeted Cost of goods sold April May June Raw material Cost per unit 4.50 4.50 4.50 Labour cost per unit 5.40 5.40 5.40 Variable manufactoring overhead 0.30 0.30 0.30 Fixed manufactoring overhead per unit 1.71 1.71 1.71 Cost of goods sold per unit 11.91 11.91 11.91 Number of units sold 250.00 310.00 410.00 Cost of goods sold 2,977.40 3,691.98 4,882.94 Selling and administrative expenses Variable 0.5*250 = 125 0.5*310 = 155 0.5*410 = 205 Fixed 670 670 670 Total 795 825 875
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