The following information applies to the questions displayed below guana, Inc, m

Question

The following information applies to the questions displayed below guana, Inc, manufactures bamboo picture frames that sell for $30 eech Each frame requires 4 linear feet of bamboo the labor rate averages $15 per hour. Iguana has the following inventory policies which costs $3.00 per foot Each frame takes approximately 30 minutes to build, and 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 Apri 355 410 460 560 535 585 June July August Variable manufacturing overhead is incurred at a rate of $D 50 per unit produced. Annual fixed manufacturing overhead is estimated to be $6,000 ($500 per monthj for expected production of 3,000 unts for the year Selling and administrative expenses are estimated at $550 per month plus $0.50 per unit sold lguana, Inc., had $16,500 cash on hand on Aprit 1. Of its sales, 80 percent is in cash. Of the credt sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the morth 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. Row materia's purchases for March T totaled $5.000 Al other operng costs are paid during the month incurred Monthly fixed manufacturing overheed includes $310 in depreciation Duning Aprl, lguana plans to pay 34,500 for a piece of equipme 13 33 points O Type here to search

Explanation / Answer

Iguana Inc Requirement Operating budget April May June 2nd Quarter total 1 Budgeted sales Revenue 12300 13800 16800 42900 2 Budgeted production in units 430 500 550 1480 3 Budgeted cost of raw material purchse 5412 6180 6618 18210 4 Budgeted direct labor cost 3225 3750 4125 11100 5 Budgeted manufacturing overhead 715 860 515 2090 6 Budgeted cost of goods sold 9352 10790 11258 31400 7 Total Budgeted selling & Admn. Expenses 755 780 830 2365 Requirement Budgeted Income Statement April May June 2nd Quarter total Budgeted sales Revenue 12300 13800 16800 42900 Budgeted cost of goods sold 9352 10790 11258 31400 Budgeted Gross Margin 2948 3010 5542 11500 Budgeted selling & Admn. Expenses 755 780 830 2365 Budgeted Net Operating Income 2193 2230 4712 9135 Working Notes Sales Budget Month Unit Sales Unit sale Price Sales Revenue Ending Finished Inventory in units March 355 30 10650 164 April 410 30 12300 184 May 460 30 13800 224 June 560 30 16800 214 July 535 30 16050 234 August 585 30 17550 Production Bughet Opening Finished goods Inventory -A Units sold-B Closing Finished goods Inventory-C Units manufactured D=B+C-A Raw Material(Bambo Feet)quantity required D*4 Opening Bamboo feet Inventory Closing Bamboo feet Inventory Bamboo Feet Invnentroy to be purchased cost of per Bamboo feet Total Raw Material Purchase Value Month March 355 164 516 April 164 410 184 430 1720 516 600 1804 3 5412 May 184 460 224 500 2000 600 660 2060 3 6180 June 224 560 214 550 2200 660 666 2206 3 6618 July 214 535 234 555 2220 666 0 August 234 585 0 Raw Material Purchase Value as calculated Payment for Direct Labor Payment of Monthly Fixed Manufacturing expenses Payment of Monthly Variable Manufacturing expenses Total Manufacturing Overhead Payment of Monthly Fixed sellign & administrative expenses Payment of Monthly Variable selling & administrative expenses Total Selling & administrative expenses Month March 5000 190 550 177.5 April 5412 3225 190 215 405 550 205 755 May 6180 3750 190 250 440 550 230 780 June 6618 4125 190 275 465 550 280 830 July 190 277.5 550 267.5 August 190 0 550 292.5 Requirement 3 April May June 2nd quarter total Beginning cash Balance 16500 16420.4 16964 16500 Requirement 1 Plus : Budgeted Cash receipts 12135 13650 16500 42285 Requirement 2 Less : Budgted Cash Payments 14214.6 11106.4 11690.4 37011.4 Preliminary Cash balance 14420.4 18964 21773.6 21773.6 Cash Borrowed/Repaid 2000 -2000 0 Ending Cash Balance 16420.4 16964 21773.6 21773.6

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.