Question

iguana, inc. Manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo. Which cost $2.00 per foot . Each frame takes approximately 30 minuets 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 the next month's of sales

Ending raw materials inventory should be 30 percent of next month;s productions.

Expected unit sales (frames ) for the upcoming months follow:

March	310
April	320
May	370
June	470
July	445
August	495

Variable manufacturing overhead is incurred at a rate of $0.50 per unit produced. Annual fixed manufacturing overhead is estimated to be $4,800 ($400 per month) for expected production of 4,800 units for the year. Selling and administrative expenses are estimated at $500 per month plus $0.50 per unit sold.

Iguana. Inc. had $10,500 cash on hand on April 1st, Of its Sales , 80 percent is in Cash. Of 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 1st totaled $2,200. All other operating cost are paid during the month incurred. Monthly fixed manufacturing overhead includes $220 in depreciation. During April, Iguana plans to pay$3,700 for a piece of equipment.

2. Compute the budgeted cash payments for Iguana. (Do not round your Intermediate calculations. Round final answers to 2 declmal places.) 2nd Quarter Total April May June Budgeted Cash Payments 0.00

Answer 1

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy Calibri - General 1 1 Wrap Text 3 Merge & Center - 3 LE Paste Format Painter Clipboard Autosum * 11 - - A A >-A BI U - Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells fx Iguana Inc. manufactures Bamboo picture frames for $25 each. A1 A 2 G H Month Sales=(A) Unit selling price=(B) Sales Price=(A)*(B) Iguana Inc. Schedule of Sales Revenue April May 320 $ 25.00 $ 8,000.00 $ June 370 25.00 $ 9,250.00 $ Quarter 470 25.00 $ 11,750.00 $ 1160 25.00 29,000.00 Iguana Inc. Production Budget April July 1160 445 198 Month Sales (Units) Add: Ending Inventory Total Needs Less: Beginning Inventory Production May 320 148 468 128 340 June 370 188 558 148 410 Quarter 470 178 648 188 460 178 1338 128 1210 178 465 Month Ending Inventory Beginning Inventory Ending Inventory April (370*40%) (320*40%) May (470*40%) (370*40%) June (445*40%) (470*40%) 88 89 Iguana Inc. 90 KONSheet1 Sheet2 Sheet3 Select destination and press ENTER or choose Paste Average: 3611.422611 Count: 616 Sum: 1133986.7 DO 100% ve ENG U 11:25 24-11-2019 OP A D

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy Calibri - General LE Paste Format Painter Clipboard 11 - - A A >-A Wrap Text 3 Merge & Center 1 1 Conditional Format - 3 insert Delete Format Autosum * 2 Clear BI U - cel Cell Styles Conditional Format Formatting as Table Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing se a Fere Font Alignment Number Cells A1 ГДА G H Quarter June 410 460 1210 fx Iguana Inc. manufactures Bamboo picture frames for $25 each. D Iguana Inc. Raw Material Purchase Budget Month April May Production 340 Raw Material required per unit Material required per unit 1360 Add: Ending Inventory 123 Total Needs 1483 Less: Beginning Inventory 102 Raw Material Purchase 1237 Raw Material cost per unit 2.00 $ Cost of Raw Material Purchase 2,474.00 $ 1640 138 1778 123 1502 2.00 $ 3,004.00 $ 1840 139.5 1979.5 138 1700.5 2.00 3,401.00$ 4840 139.5 4979.5 102 4700.5 2.00 9,401.00 s $ 104 105 107 Month Ending Raw Material Inventory Beginning Raw Material Inventory Raw Material Inventory April (410*30%) (340*30%) May (460*30%) (410*30%) June (465*30%) (460*30%) 108 109 110 111 Iguana Inc. Labor budget April Months May June Quarter ---.. :-- 112 Ke Ready Sheet1 Sheet2 Sheet30 Average: 3611.422611 Count: 616 B + Sum: 1133986.7 op O ^ U U 100% 0 - 11:25 ENG 24-11-2019 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy Calibri - General 1 1 Wrap Text 3 Merge & Center - 3 LE Paste Format Painter Clipboard Autosum * 11 - - A A >-A BI U - Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells fx Iguana Inc. manufactures Bamboo picture frames for $25 each. A1 ГДА 110 F G H I Iguana Inc. Labor budget April 112 May 3401 113 0.51 Months Production=(A) Direct Labor hours required per unit=(B) Total Direct Labor Hours=(C)=(A)*(B) Direct Labor rate per hours=(D) Direct Labor cost=(C)*(D) June 410 0.5 2050 13.00 $ 2,665.00 $ Quarter 460 0.5 230 13.00 $ 2,990.00 $ 170 13.00 2,210.00 1210 0.5 605 13.00 7,865.00 $ $ April Iguana Inc. Manufacturing Overhead Month Production=(A) Variable Manufacturing Overhead per unit=(B) Total Variable Manufacturing Cost=(C)=(A)*(B) Fixed Manufacturing Overhead=(D) Total Administrative Expenses(C)+D) 340.00 0.50 170.00 400.00 570.00 May $ $ $ $ $ June 410.00 $ 0.50 205.00 $ 400.00 $ 605.00 $ Quarter 460.00 $ 0.50 $ 230.00 $ 400.00 $ 630.00 $ 1,210.00 0.50 605.00 400.00 1,005.00 Manufacturing Cost per unit Direct Material(4ft* $ 2 per ft) Direct Labor(.50*$13) Variable Overhead Fixed Overhead($4800/4800) Fantinerantencuit Sheet1 Sheet2 Sheet3 8.00 6.50 0.50 1.00 131 132 + Ready Average: 3611.422611 Count: 616 Sum: 1133986.7 B O U + 100% - ENG 0 11:25 24-11-2019 OP A D 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy Calibri - General LE Paste Format Painter Clipboard 11 - - A A >-A Wrap Text 3 Merge & Center 1 D . 3 To se conditional airport insert Delete Format AutoSum" AT A 2 clear to that finde BI U - Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells A1 fx Iguana Inc. manufactures Bamboo picture frames for $25 each. 128 129 130 Manufacturing Cost per unit Direct Material(4ft* $ 2 per ft) Direct Labor(.50*$13) Variable Overhead Fixed Overhead($4800/4800) Manufacturing Cost per unit 8.00 6.50 0.50 1.00 16 Cost of good sold April May June Month Sales Manufacturing cost per unit Cost of good sold Sales* manufacturing cost per unit 320 16.00 5,120.00 370 16.00 5,920.00 $ $ Quarter 1160 $ 16.00 $ 18,560.00 470 16.00 7,520.00 $ $ April IGUANA INC. Selling & Administerative Expenses Budget May 320 0.50 $ June 3701 0.50 $ Quarter 4701 0.50 $ 145 1160 0.50 Month Sales=(A) Variable Selling & Administerative Expenses=(B) Total Variable Selling & Administerative expenses=(C)=(A)*(B) Fixed Selling & administertive Expenses=(D) Total Selling & Administrative Expenses(C)+(D) 146 147 148 149 160.00 500.00 660.00 $ $ $ 185.00 500.00 685.00 $ $ $ 235.00$ 500.00 $ 735.00 $ 580.00 1,500.00 2,080.00 $ Sheet1 Sheet2 Sheet3 0 Ready Average: 3611.422611 Count: 616 Sum: 1133986.7 B O U + 100% - ENG 0 11:25 24-11-2019 OP A D 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General - LE Paste Format Painter Clipboard Calibri 11 - A A BIU - DA Font Wrap Text 3 Merge & Center ... od D conditional Format Society - E insert Delete Format E Autosum 2 Clear A7 Sort & Find & Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells - A150 A F G H I 159 161 April June Quarter Iguana Inc. Schedule of expected Cash collection May 775.00 7,200.00 $ $ Month Accounts Receivable(March) April Sales May Sales June Sales Total Cash collection 800.00 8,325.00 163 164 165 166 $ 925.00 10,575.00 11,500.00 S $ $ $ 775.00 8,000.00 9,250.00 10,575.00 28,600.00 7,975.00 $ 9,125.00 $ 169 May June Working of cash collection April (310*25*50%*20%) (8000*80%) +(8000*50%*20%) Month Accounts Receivable(March Credit sales*20%) April Sales May Sales June Sales 171 (8000*50%*20%) (9250*80%)+(9250*50%*20%) 172 173 174 (9250*50%*20%) (11750*80%)+(11750*50%*20%) Quarter 176 177 Schedulae of Budgeted cash payment for raw material purchased April May June 440.00 1,979.20 $ 494.80 $ 2,403.20 $ 178 Month March purchase April Purchase May Purchase June Purchases Total cash disbursement Sheet1 Sheet2 Sheet3 179 180 181 $ 600.80 $ 2,720.80 $ 3,321.60 $ 440.00 2,474.00 3,004.00 2,720.80 8,638.80 S 2,419.20 $ 2,898.00 $ Ready Average: 6844 Count: 32 + Sum: 136880 0 0 0 100% 0 - 11:25 PADENGA 24-11-2019 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 Wrap Text 3 Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri 11 - A A BIU - DA Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells A150 А F G H I 182 183 May June 184 185 186 187 188 189 190 Month March purchase April Purchase May Purchase June Purchases Cash paid for Raw Material purchased April (2200*20%) ($2474*80%) ($2474*20%) ($3004*80%) ($3004*20%) ($3401*80%) 191 April 192 Cash Budget May 10,500.00 $ 7,975.00 $ 18,475.00 $ 10,135.80 9,125.00 19,260.80 June $ $ $ Quarter 11,627.80$ 10,500.00 11,500.00 $ 28,600.00 23,127.80 $ 39,100.00 194 195 196 197 198 199 200 201 202 Month Beginning Balance Add: Collection from customers Total cash available Less :Amount Disbursements Merchandise purchase Direct Labor Manufacturing Overhead Selling and Administrative Expenses Equipment Purchases Total disbursement Excess of receipts over disbursement Financing: Borrowings Repavments Sheet1 Sheet2 Sheet3 2,419.20 $ 2,210.00 $ 350.00 $ 660.00 $ 3,700.00 9,339.20 $ 9,135.80 $ 2,898.00 $ 2,665.00 $ 385.00 $ 685.00 $ 3,321.60 $ 2,990.00 $ 410.00 $ 735.00 $ 8,638.80 7,865.00 1,145.00 2,080.00 3,700.00 23,428.80 15,671.20 6,633.00 $ 12,627.80 $ 7,456.60 $ 15,671.20 $ 203 204 1,000.00 205 (1.000.00) 1,000.00 IS (1.000.00)| Count: 32 Sum: 136880 0 0 0 100% 0 - PADENGA 11:25 24-11-2019 Ready Average: 6844 + 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 Wrap Text 3 Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri 11 - A A BIU - DA Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells A150 - A F G H I 190 April June Cash Budget May 10,500.00 $ 7,975.00 $ 18,475.00 $ 10,135.80 9,125.00 19,260.80 Quarter 11,627.80 $ 10,500.00 11,500.00 28,600.00 23,127.80 $ 39,100.00 193 $ 194 195 196 197 198 Month Beginning Balance Add: Collection from customers Total cash available Less :Amount Disbursements Merchandise purchase Direct Labor Manufacturing Overhead Selling and Administrative Expenses Equipment Purchases Total disbursement Excess of receipts over disbursement Financing: Borrowings Repayments Total Financing 2,419.20 2,210.00 350.00 660.00 3,700.00 9,339.20 9,135.80 $ $ $ $ 2,898.00 2,665.00 $ 385.00 $ 685.00 $ 3,321.60 2,990.00 410.00 735.00 199 $ $ $ $ 8,638.80 7,865.00 1,145.00 2,080.00 3,700.00 23,428.80 15,671.20 201 $ $ 6,633.00 12,627.80 $ $ 7,456.60 $ 15,671.20 $ 1,000.00 (1,000.00) 11,627.80 1,000.00 (1,000.00) 15,671.20 10,135.80 $ $ 15,671.20 $ 205 206 207 208 209 2) June 210 211 212 Payment for Raw Material Labor cost Manufacturing Overhead Selling & Administrative Sheet1 Sheet2 Sheet3 Schedule of Budgeted cash payment April |May 2,419.20 $ 2,210.00 $ 350.00 $ 660.00 $ 2,898.00 2,665.00 385.00 685.00 $ $ $ 3,321.60 2,990.00 410.00 735.00 213 Ready Average: 6844 Count: 32 Sum: 136880 + 0 0 0 100% - AND ENG 0 11:26 24-11-2019 9

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General Wrap Text 3 Merge & Center 1 1 - 3 Autosum * Calibri 11 - A A BIU - DA Font Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells A150- А GH 9,339.20 $ 9,135.80 $ 6,633.00 12,627.80 $ $ 7,456.60 $ 15,671.20 $ 23,428.80 15,671.20 Total disbursement Excess of receipts over disbursement Financing: Borrowings Repayments Total Financing 1,000.00 $ 204 205 (1,000.00) 11,627.80 $ 1,000.00 (1,000.00) 15,671.20 10,135.80 $ 15,671.20 $ 207 208 209 2) |May June $ 211 212 213 Payment for Raw Material Labor cost Manufacturing Overhead Selling & Administrative Equipment Purchased Schedule of Budgeted cash payment April 2,419.20 $ 2,210.00 $ 350.00 $ 660.00 $ 3,700.00 9,339.20 $ 2,898.00 2,665.00 385.00 685.00 3,321.60 2,990.00 410.00 735.00 $ 215 6,633.00 $ 7,456.60 216 217 Cash Budget 218 219 220 Beginning Cash Balance Add:Budgeted Cash Receipts Less: Budgeted cash payment Preliminary cash balance Cash borrowed/repaid Ending Cash balance 10,500.00 7,975.00 9,339.20 9,135.80 1,000.00 10,135.80 $ $ $ $ $ $ 10,135.80 $ 9,125.00 $ 6,633.00 $ 12,627.80 $ -1,000.00 11,627.80 $ 11,627.80 11,500.00 7,456.60 15,671.20 222 15,671.20 224 Sheet1 Sheet2 Sheet3 69414 Ready Average: 6844 Count: 32 Sum: 136880 1 2 * Ô e OU 100% - 0 - 11:26 AND ENG 24-11-2019 9