Question

Compute the following for Iguana inc for the second quarter (April, May, June)

Answer 1

Req.
		April	May	June	July	2nd Quarter Total
1	Budgeted Sales Revenue:
	Units sold	280	330	430
	Selling price per unit	25	25	25
	Budgeted Sales Revenue:	7000	8250	10750		26000
2	Budgeted Production in Units:
	Units sold	280	330	430	405
	add: closing stock	132	172	162	182
	Total required	412	502	592	587
	less:opening stock	112	132	172	162
	Budgeted Production in Units:	300	370	420	425	1090
3	Budgeted cost of DM purchases:
	Budgeted Production in Units:	300	370	420	425
	DM per unit	4	4	4	4
	Total foot DM required	1200	1480	1680	1700
	add: closing DM	444	504	510
	Total DM required	1644	1984	2190
	less: opening DM	360	444	504
	DM purchases required	1284	1540	1686
	cost per foot of DM	2	2	2
	Budgeted cost of DM purchases:	2568	3080	3372		9020
4	Budgeted Direct Labor Cost:
	Budgeted Production in Units:	300	370	420
	DL required per unit	0.5	0.5	0.5
	total DL required for production	150	185	210
	Labor rate per hour	11	11	11
	Budgeted Direct Labor Cost:	1650	2035	2310		5995
5	Budgeted Manufacturing Overhead:
	Budgeted Production in Units:	300	370	420
	Variable Manuf. Overhead per unit	0.6	0.6	0.6
	Total variable Manuf. Overhead	180	222	252
	Fixed Manuf. Overhead	600	600	600
	Budgeted Manufacturing Overhead:	780	822	852		2454
6	Budgeted Cost of goods sold:
	Total cost of production:
	Total DM required	1644	1984	2190
	Budgeted Direct Labor Cost:	1650	2035	2310
	Budgeted Manufacturing Overhead:	3294	4019	4500
	Total cost of production:	6588	8038	9000
	Budgeted Production in Units:	300	370	420
	Cost of production per unit	21.96	21.72	21.43
	Units sold	280	330	430
	Budgeted Cost of goods sold:	6149	7169	9214		22532
7	Total Budgeted Selling and Admin expenses:
	Units sold	280	330	430
	Fixed portion of Sell & Ad	700	700	700
	variable portion 0.50 per unit sold	140	165	215
	Total Budgeted Selling and Admin expenses:	840	865	915		2620