Required information [The following information applies to the questions displayed below.] Iguana, Incorporated, 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 $11 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 next month's production. Expected unit sales (frames) for the upcoming months follow: March April May June July August 290 280 330 430 405 455 Variable manufacturing overhead is incurred at a rate of $0.60 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 3,000 units for the year. Selling and administrative expenses are estimated at $700 per month plus $0.50 per unit sold. Iguana, Incorporated, had $11,100 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 direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Direct materials purchases for March 1 totaled $2,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $180 in depreciation. During April, Iguana plans to pay $3,300 for a piece of equipment. Required: . Compute the budgeted cash receipts for Iguana. - Compute the budgeted cash navments for lauana
Required information [The following information applies to the questions displayed below.] Iguana, Incorporated, 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 $11 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 next month's production. Expected unit sales (frames) for the upcoming months follow: March April May June July August 290 280 330 430 405 455 Variable manufacturing overhead is incurred at a rate of $0.60 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 3,000 units for the year. Selling and administrative expenses are estimated at $700 per month plus $0.50 per unit sold. Iguana, Incorporated, had $11,100 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 direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Direct materials purchases for March 1 totaled $2,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $180 in depreciation. During April, Iguana plans to pay $3,300 for a piece of equipment. Required: . Compute the budgeted cash receipts for Iguana. - Compute the budgeted cash navments for lauana
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need 1,2,3 please
![Required information
[The following information applies to the questions displayed below.]
Iguana, Incorporated, 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 $11 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 next month's production.
Expected unit sales (frames) for the upcoming months follow:
March
April
June
July
August
290
280
330
430
405
455
Variable manufacturing overhead is incurred at a rate of $0.60 per unit produced. Annual fixed
manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 3,000 units
for the year. Selling and administrative expenses are estimated at $700 per month plus $0.50 per unit sold.
Iguana, Incorporated, had $11,100 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 direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in
the following month. Direct materials purchases for March 1 totaled $2,000. All other operating costs are
paid during the month incurred. Monthly fixed manufacturing overhead includes $180 in depreciation. During
April, Iguana plans to pay $3,300 for a piece of equipment.
Required:
1. Compute the budgeted cash receipts for Iguana.
2 Compute the budgeted cash navments for lauana
Prey
S
2
of 2
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f861ae4-73ff-4661-bc40-30548561b517%2F68bd0f41-2569-4294-b32c-97954078421f%2F4atg0vh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Iguana, Incorporated, 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 $11 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 next month's production.
Expected unit sales (frames) for the upcoming months follow:
March
April
June
July
August
290
280
330
430
405
455
Variable manufacturing overhead is incurred at a rate of $0.60 per unit produced. Annual fixed
manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 3,000 units
for the year. Selling and administrative expenses are estimated at $700 per month plus $0.50 per unit sold.
Iguana, Incorporated, had $11,100 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 direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in
the following month. Direct materials purchases for March 1 totaled $2,000. All other operating costs are
paid during the month incurred. Monthly fixed manufacturing overhead includes $180 in depreciation. During
April, Iguana plans to pay $3,300 for a piece of equipment.
Required:
1. Compute the budgeted cash receipts for Iguana.
2 Compute the budgeted cash navments for lauana
Prey
S
2
of 2
Next
Transcribed Image Text:Of direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in
the following month. Direct materials purchases for March 1 totaled $2,000. All other operating costs are
paid during the month incurred. Monthly fixed manufacturing overhead includes $180 in depreciation. During
April, Iguana plans to pay $3,300 for a piece of equipment.
Required:
1. Compute the budgeted cash receipts for Iguana.
2. Compute the budgeted cash payments for Iguana.
3. Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $10,000
minimum cash balance. No interest is charged if the loan is paid off by the end of the next quarter.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $10,000
minimum cash balance. No interest is charged if the loan is paid off by the end of the next quarter.
Note: Leave no cell blank enter "0" wherever required. Round your answers to 2 decimal places.
Beginning Cash Balance
Plus: Budgeted Cash Receipts
Less: Budgeted Cash Payments
Preliminary Cash Balance
Cash Borrowed / Repaid
Ending Cash Balance
April
< Required 2
May
June
Required 3
2nd Quarter Total
0.00
0.00
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