Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations to 2 decimal places.) IGUANA, INC. Budgeted Income Statement For the Quarter Ending June April May June 2nd Quarter Total
Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations to 2 decimal places.) IGUANA, INC. Budgeted Income Statement For the Quarter Ending June April May June 2nd Quarter Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations to 2 decimal places.)
Budgeted Gross Margin
Budgeted Net Operating Income
IGUANA, INC.
Budgeted Income Statement
For the Quarter Ending June
April
May
June
2nd Quarter
Total
![Required information
[The following information applies to the questions displayed below.]
Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo,
which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 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:
March
April
May
June
July
August
275
250
300
400
375
425
Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is
estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative
expenses are estimated at $650 per month plus $0.60 per unit sold.
Iguana, Inc., had $10,800 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 $2,000. All other operating costs are paid during the month incurred.
Monthly fixed manufacturing overhead includes $150 in depreciation. During April, Iguana plans to pay $3,000 for a piece
of equipment.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4a77155-f926-48a9-a261-c8a1a2f25525%2Fd75d5dd8-e146-4743-a23b-1011dfc4b50d%2F1witwft_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo,
which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 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:
March
April
May
June
July
August
275
250
300
400
375
425
Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is
estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative
expenses are estimated at $650 per month plus $0.60 per unit sold.
Iguana, Inc., had $10,800 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 $2,000. All other operating costs are paid during the month incurred.
Monthly fixed manufacturing overhead includes $150 in depreciation. During April, Iguana plans to pay $3,000 for a piece
of equipment.
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