The folowing information applies to the questions displayed below Iguana, Inc, m
ID: 2513186 • Letter: T
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The folowing information applies to the questions displayed below Iguana, Inc, manufactures bamboo picture frames that sell for $20 each Each frame requires 4 inear feet of bamboo, which costs $2 00 per foot Each frame takes approximately 30 minutes to build, and the labor rate averages $13 per hour lguana 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 March 365 430 480 production of 4,000 units for the year Selling and administrative expenses ar estimaned at $450 per month plus so s0 per unt so guana, Iinc. had $11,000 cash collected during the month following the sae on hand on Aprn 1 of its sales, 80 percent s in cash of the creat saies.o 80 percent is paid tor duning the month purchased and 20 percent s pad in onthaw urchases for March1 oted $3 400 a piece All other operating costs are pand during the month incurred Monthly edExplanation / Answer
Sales Budget April May June Total Sales in Units 430.00 480.00 580.00 1,490.00 Sp Per Unit 20.00 20.00 20.00 20.00 Total Sales in $ 8,600.00 9,600.00 11,600.00 29,800.00 Cash Sales -80% 6,880.00 7,680.00 9,280.00 23,840.00 Credit Sales - 20% 1,720.00 1,920.00 2,320.00 5,960.00 Schedule of Expected Cash Collections from Sales April May June Total Cash Sales 6,880.00 7,680.00 9,280.00 23,840.00 Collection from Accounts Receivables Mar Sales 730.00 730.00 Apr Sales 860.00 860.00 1,720.00 May Sales 960.00 960.00 1,920.00 Jun Sales 1,160.00 1,160.00 Total cash Collections 8,470.00 9,500.00 11,400.00 29,370.00 Answer 2. Frame Production Budget April May June Total Sales In units 430.00 480.00 580.00 1,490.00 Add: Closing Inventory in units 192.00 232.00 222.00 222.00 Total Needs 622.00 712.00 802.00 1,712.00 Less: opening Inventory in uints (172.00) (192.00) (232.00) (172.00) Required Production in Units 450.00 520.00 570.00 1,540.00 Raw Material Purchase Budget April May June Total Required Production in Units 450.00 520.00 570.00 1,540.00 Bamboo required per Unit in Feet 4.00 4.00 4.00 4.00 Total Bamboo required for Production 1,800.00 2,080.00 2,280.00 6,160.00 Add: Closing Raw Material Inventory 624.00 684.00 690.00 690.00 Total Needs 2,424.00 2,764.00 2,970.00 6,850.00 Less: opening Inventory in feets (540.00) (624.00) (684.00) (540.00) Raw Material Purchased in feets 1,884.00 2,140.00 2,286.00 6,310.00 Cost of raw Material per feet 2.00 2.00 2.00 2.00 Cost of raw Material Purchased 3,768.00 4,280.00 4,572.00 12,620.00 Schedule of Cash payments to Suppliers April May June Total Cash Payment Mar Purchases 680.00 - - 680.00 Apr Purchases 3,014.40 753.60 - 3,768.00 May Purchases - 3,424.00 856.00 4,280.00 June Purchases - - 3,657.60 3,657.60 Total Cash Payment to Suppliers 3,694.40 4,177.60 4,513.60 12,385.60 Budgeted Direct Labor Costs April May June Total Required Production in Units 450.00 520.00 570.00 1,540.00 Lab. Hour required per unit 0.50 0.50 0.50 0.50 Total Labor Hours Required 225.00 260.00 285.00 770.00 Lab. Rate per Hour 13.00 13.00 13.00 13.00 Budgeted Direct Labor Costs 2,925.00 3,380.00 3,705.00 10,010.00 Budgeted Manufacturing Overhead April May June Total Required Production in Units 450.00 520.00 570.00 1,540.00 Variable MOH per Unit 0.30 0.30 0.30 0.30 Total Variable MOH 135.00 156.00 171.00 462.00 Total Budgetd Selling & Admn. Expenses April May June Total No. Of Units Sold 430.00 480.00 580.00 1,490.00 Variable Selling & Admn. Exp. Per Unit 0.50 0.50 0.50 0.50 Total Variable selling & Admn. Exp. 215.00 240.00 290.00 745.00 Budgeted Cash Payment April May June Total Cash paid for Raw Materials 3,694.40 4,177.60 4,513.60 12,385.60 Cash Paid for Direct Labor 2,925.00 3,380.00 3,705.00 10,010.00 Cash Paid for Variable MOH 135.00 156.00 171.00 462.00 Cash Paid for Fixed MOH 70.00 70.00 70.00 210.00 Cash Paid for Variable Selling & Admn. Exp. 215.00 240.00 290.00 745.00 Cash Paid for Fixed Selling & Admn. Exp. 450.00 450.00 450.00 1,350.00 Cash paid For Equipment 2,000.00 - - 2,000.00 Total Disbursements 9,489.40 8,473.60 9,199.60 27,162.60 Answer 3. Cash Budget April May June Total Beginning Cash Balance 11,000.00 10,980.60 11,007.00 11,000.00 Add: Budgeted Cash Receipt 8,470.00 9,500.00 11,400.00 29,370.00 Less: Budgeted Cash payments (9,489.40) (8,473.60) (9,199.60) (27,162.60) Preliminary Cash balance 9,980.60 12,007.00 13,207.40 13,207.40 Cash Borrowed / Repaid 1,000.00 (1,000.00) - - Ending Cash Balance 10,980.60 11,007.00 13,207.40 13,207.40
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