Question

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 $14 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 510 June July August Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $8,400 ($700 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $750 per month plus $0.50 per unit sold. Iguana, Inc had $13,500 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 $2,800. All other operating costs are paid during the month incurred Monthly fixed manufacturing overhead includes $260 in depreciation. During April, Iguana plans to pay $2.500 for a piece of equipment. Required: Compute the following for Iguana, Inc, for the second quarter (April, May, and June) April May June 2nd Quarter

Answer 1

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Due to character limit I am attaching the image for answer 6 and Total Workings for Answer 6 Budgeted cost of Direct Material used Budgeted Sales units Bamboo required per unit Bamboo required Cost per foot Budgeted cost of Direct Material used April 360.00 4.00 1,440.00 2.00 2,880.00 May 410.00 4.00 1,640.00 2.00 3,280.00 June 510.00 4.00 2,040.00 2.00 4,080.00 Note See A See E R=A*E See J S=R*J 10,240.00 Total Budgeted labor cost for units sold Budgeted Sales units Direct Labor hour per unit Direct Labor hour required Labor Cost per hour Budgeted Direct Labor cost April 360.00 0.50 180.00 14.00 2,520.00 May 410.00 0.50 205.00 14.00 2,870.00 June 510.00 0.50 255.00 14.00 3,570.00 Note See A See L T=A*L See N U=T* N 8,960.00 Total Budgeted manufacturing overhead for units sold Budgeted Sales units Variable manufacturing overhead per unit Variable manufacturing overhead Budget Add: Fixed manufacturing overhead Budgeted manufacturing overhead April 360.00 0.40 144.00 700.00 844.00 May 410.00 0.40 164.00 700.00 864.00 June 510.00 0.40 204.00 700.00 904.00 Note See A See P V=A*P 512.00 2,612.00 W Answer 6 Budgeted cost of goods sold Budgeted cost of Direct Material used Budgeted Direct Labor cost Budgeted manufacturing overhead Budgeted cost of goods sold April 2,880.00 2,520.00 844.00 6,244.00 May 3,280.00 2,870.00 864.00 7,014.00 June 4,080.00 3,570.00 904.00 8,554.00 Total 10,240.00 8,960.00 2,612.00 21,812.00 Note See S See U See W Total Note See A Answer 7 Selling & admin expenses Budget Budgeted Sales units Variable Selling & admin expenses per unit Variable Selling & admin expenses Budget Add: Fixed Selling & admin expenses Budgeted Selling & admin expenses Budget April 360.00 0.50 180.00 750.00 930.00 May 410.00 0.50 205.00 750.00 955.00 June 510.00 0.50 255.00 750.00 1,005.00 Y=A*X 640.00 2,250.00 2,890.00 7.

Iguana
Answer 1
Sales Budget	March	April	May	June	Total	July	August	Note
Budgeted Sales units	330.00	360.00	410.00	510.00		485.00	535.00	A
Sell price per unit	25.00	25.00	25.00	25.00		25.00	25.00	B
Budgeted Sales Revenue	8,250.00	9,000.00	10,250.00	12,750.00	32,000.00	12,125.00	13,375.00	C=A*B
Answer 2
Budgeted Production in units	March	April	May	June	Total	July	August	Note
Budgeted Sales units	330.00	360.00	410.00	510.00		485.00	535.00	See A
Add: Closing	144.00	164.00	204.00	194.00		214.00		B= 40% of A of next month.
Less: Opening	132.00	144.00	164.00	204.00		194.00		C= 40% of A of same month.
Budgeted Production in units	342.00	380.00	450.00	500.00	1,330.00	505.00		D=A+B-

Answer 3
Budgeted cost of Direct Material Purchases		April	May	June	Total	July	Note
Budgeted Production in units		380.00	450.00	500.00		505.00	See D
Bamboo required per unit		4.00	4.00	4.00		4.00	E
Bamboo required		1,520.00	1,800.00	2,000.00		2,020.00	F=E*D
Add: Closing		540.00	600.00	606.00			G= 30% of F of next month.
Less: Opening		456.00	540.00	600.00			H= 30% of F of same month.
Material Purchase Budget		1,604.00	1,860.00	2,006.00			I=F+G-H
Cost per foot		2.00	2.00	2.00			J
Budgeted cost of Direct Material Purchases		3,208.00	3,720.00	4,012.00	10,940.00		K=I*J

Answer 4
Budgeted Direct Labor cost		April	May	June	Total	Note
Budgeted Production in units		380.00	450.00	500.00		See D
Direct Labor hour per unit		0.50	0.50	0.50		L
Direct Labor hour required		190.00	225.00	250.00		M=L*D
Labor Cost per hour		14.00	14.00	14.00		N
Budgeted Direct Labor cost		2,660.00	3,150.00	3,500.00	9,310.00	O=M*N
Answer 5
Budgeted manufacturing overhead		April	May	June	Total	Note
Budgeted Production in units		380.00	450.00	500.00		See D
Variable manufacturing overhead per unit		0.40	0.40	0.40		P
Variable manufacturing overhead Budget		152.00	180.00	200.00	532.00	Q=D*P
Add: Fixed manufacturing overhead		700.00	700.00	700.00
Budgeted manufacturing overhead		852.00	880.00	900.00	2,632.00

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Total Note See A Answer 7 Variable Selling & admin expenses Budget Budgeted Sales units Variable Selling & admin expenses per unit Variable Selling & admin expenses Budget Add: Variable Selling & admin expenses Budgeted manufacturing overhead April 360.00 0.50 180.00 750.00 930.00 May 410.00 0.50 205.00 750.00 955.00 June 510.00 0.50 255.00 750.00 1,005.00 Y=A*X 640.00 2,250.00 2,890.00

Total Workings for Answer 6 Budgeted cost of Direct Material used Budgeted Sales units Bamboo required per unit Bamboo required Cost per foot Budgeted cost of Direct Material used April 360.00 4.00 1,440.00 2.00 2,880.00 May 410.00 4.00 1,640.00 2.00 3,280.00 June 510.00 4.00 2,040.00 2.00 4,080.00 Note See A See E R=A*E See J S=R*J 10,240.00 Total Budgeted labor cost for units sold Budgeted Sales units Direct Labor hour per unit Direct Labor hour required Labor Cost per hour Budgeted Direct Labor cost April 360.00 0.50 180.00 14.00 2,520.00 May 410.00 0.50 205.00 14.00 2,870.00 June 510.00 0.50 255.00 14.00 3,570.00 Note See A See L T=A*L See N U=T* N 8,960.00 Total Budgeted manufacturing overhead for units sold Budgeted Sales units Variable manufacturing overhead per unit Variable manufacturing overhead Budget Add: Fixed manufacturing overhead Budgeted manufacturing overhead April 360.00 0.40 144.00 700.00 844.00 May 410.00 0.40 164.00 700.00 864.00 June 510.00 0.40 204.00 700.00 904.00 Note See A See P V=A*P 512.00 2,612.00 W Answer 6 Budgeted cost of goods sold Budgeted cost of Direct Material used Budgeted Direct Labor cost Budgeted manufacturing overhead Budgeted cost of goods sold April 2,880.00 2,520.00 844.00 6,244.00 May 3,280.00 2,870.00 864.00 7,014.00 June 4,080.00 3,570.00 904.00 8,554.00 Total 10,240.00 8,960.00 2,612.00 21,812.00 Note See S See U See W

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