Iguana inc. manufactures bamboo picture frames that sell for 20 dollars each. each frame requires 4 linear feet of bamboo, which costs 1.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages 13 per hour, iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month's sales. Ending direct materials inventory should be 30 percent of nect month's production Expected unit sales (frames) for the upcoming months follow: March 345 April 390 May 440 June 540 July 515 August 565 Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufaturing overhead is estimated to be 7,200 (600 per month) for expected production of 6,000 units for the year. Selling and administrative expenses are estimated at 650 per month plus 0.50 per unit sold. Iguana Inc. had 15,800 cash on hand on april 1. of its sales, 80 person is in cahs. Of the credit sales, 50 percent is collected during hte month of the sale, and 50 oercent is collected during hte month following the sale. Of direct materials purchases, 80 percent is paid for the during hte month purchased and 20 percent is paid in the following month. Direct materials purchases for march 1 totaled $3,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $290 in depreciation. During April, Iguana plans to pay $3,000 for a piece of equipment. Compute the following for iguana, Inc for the second
Iguana inc. manufactures bamboo picture frames that sell for 20 dollars each. each frame requires 4 linear feet of bamboo, which costs 1.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages 13 per hour, iguana has the following inventory policies:
- Ending finished goods inventory should be 40 percent of next month's sales.
- Ending direct materials inventory should be 30 percent of nect month's production
Expected unit sales (frames) for the upcoming months follow:
March 345
April 390
May 440
June 540
July 515
August 565
Variable manufacturing
Iguana Inc. had 15,800 cash on hand on april 1. of its sales, 80 person is in cahs. Of the credit sales, 50 percent is collected during hte month of the sale, and 50 oercent is collected during hte month following the sale.
Of direct materials purchases, 80 percent is paid for the during hte month purchased and 20 percent is paid in the following month. Direct materials purchases for march 1 totaled $3,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $290 in
Compute the following for iguana, Inc for the second quarter (April, May and june).
1. Budgeted Sales Revenue
2. Budgeted Production in Units
3. Budgeted Cost of Direct Materials Purchases
4. Budgeted Direct Labor Cost
5. Budgeted Manufacturing Overhead
6. Budgeteted Cost of Goods Sold
7. Total Budgeted Selling and Administrative Expenses
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