(The following information applies to the questions displayed below] amboo, whic
ID: 2520065 • Letter: #
Question
(The following information applies to the questions displayed below] amboo, which costs $2.50 per foot. Each frame takes approximately 30 minutes to build, and t Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of fb labor rate averages $14 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 April May June July August 350 400 450 550 525 575 r month) for expected production of 4,000 un the credit sales, 50 percent is cllected during the month of the sale, and 50 percent is collected during the mor percent is paid for during the month purchased and 20 percent is paid in the following month. Raw materials purchases for March 1 totaled $4,000. All other operating Variable manufacturing overheed is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $10.800 (ss00 pe for the year. Selling and administrative expenses are estimated at $950 per month plus $0.60 per unit sold. lguana, Inc, had $11,900 cash on hand on Apri 1 Of ts sales, B0 percent is in cash. of following the sale uring overhead includes $300 in depreciation. During April, Iguana plans to pay $2,000 for a piece of ecuipment in depreciation are paid during the month incurred. Monthly fixed manufacturing Required information value: 10.00 pointsExplanation / Answer
Sales Budget April May June Total Sales in Units 400 450 550 1,400 Sp Per Unit 25 25 25 25 Total Sales in $ 10,000 11,250 13,750 35,000 Frame Production Budget April May June Total Sales In units 400 450 550 1,400 Add: Closing Inventory in units 180 220 210 210 Total Needs 580 670 760 1,610 Less: opening Inventory in uints (160) (180) (220) (160) Required Production in Units 420 490 540 1,450 Raw Material Purchase Budget April May June Total Required Production in Units 420 490 540 1,450 Bamboo required per Unit in Feet 4 4 4 4 Total Bamboo required for Production 1,680 1,960 2,160 5,800 Add: Closing Raw Material Inventory 588 648 654 654 Total Needs 2,268 2,608 2,814 6,454 Less: opening Inventory in feets (504) (588) (648) (504) Raw Material Purchased in feets 1,764 2,020 2,166 5,950 Cost of raw Material per feet 2.50 2.50 2.50 2.50 Cost of raw Material Purchased 4,410 5,050 5,415 14,875 Budgeted Direct Labor Costs April May June Total Required Production in Units 420 490 540 1,450 Lab. Hour required per unit 0.50 0.50 0.50 0.50 Total Labor Hours Required 210 245 270 725 Lab. Rate per Hour 14 14 14 14 Budgeted Direct Labor Costs 2,940 3,430 3,780 10,150 Budgeted Manufacturing Overhead April May June Total Required Production in Units 420 490 540 1,450 Variable MOH per Unit 0.40 0.40 0.40 0.40 Total Variable MOH 168 196 216 580 Fixed MOH Depreciation 300 300 300 900 Other MOH 600 600 600 1,800 Total Fixed MOH 900 900 900 2,700 Total MOH 1,068 1,096 1,116 3,280 Budgeted Manufacturing Costs per Unit: Direct Materials - 4 Ft. X $2.50 10.00 Direct Labor - 0.50 Hrs X $14 7.00 Variable MOH 0.40 Fixed MOH - $10,800 / 4,000 Units 2.70 Total Budgted Manufacturing Cost per Unit 20.10 Budgeted Cost of Goods Sold April May June Total No. Of Units Sold 400 450 550 1,400 Total Budgted Manufacturing Cost per Unit 20.10 20.10 20.10 20.10 Budgeted Cost of Goods Sold 8,040.00 9,045.00 11,055.00 28,140.00 Total Budgetd Selling & Admn. Expenses April May June Total No. Of Units Sold 400 450 550 1,400 Variable Selling & Admn. Exp. Per Unit 0.60 0.60 0.60 0.60 Total Variable selling & Admn. Exp. 240 270 330 840 Fixed selling & Admn. Exp. 950 950 950 2,850 Total selling & Admn. Exp. 1,190 1,220 1,280 3,690 IGUANA INC. Budgeted Income Statement For the Quarter Ending June April May June Total Sales 10,000.00 11,250.00 13,750.00 35,000.00 Less: Budgeted Cost of Goods Sold 8,040.00 9,045.00 11,055.00 28,140.00 Gross Margin 1,960.00 2,205.00 2,695.00 6,860.00 Less: Budgeted Selling & Administrative Exp. 1,190.00 1,220.00 1,280.00 3,690.00 Budgeted Net Income 770.00 985.00 1,415.00 3,170.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.