Question

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Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $3.00 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 raw materials inventory should be 30 percent of next month’s production.

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

March 285 April 270 May 320 June 420 July 395 August 445

Variable manufacturing overhead is incurred at a rate of $0.50 per unit produced. Annual fixed manufacturing overhead is estimated to be $8,400 ($700 per month) for expected production of 4,200 units for the year. Selling and administrative expenses are estimated at $750 per month plus $0.50 per unit sold.

Iguana, Inc., had $11,000 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.

Required:

Compute the following for Iguana, Inc., for the second quarter (April, May, and June).

Required information

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 1 totaled $3,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $170 in depreciation. During April, Iguana plans to pay $3,200 for a piece of equipment.

1. Budgeted Sales Revenue

2. Budgeted Production in Units

3. Budgeted Cost of Raw Material Purchases

4. Budgeted Direct Labor Cost

5. Budgeted Manufacturing Overhead

6. Budgeted Cost of Goods Sold.

7. Total Budgeted Selling and Adm. Expenses

April May June

$ 8,100 $ 9,600 $ 12,600 290 360 410

$ 3,732 $ 4,500
$ 1,885 $ 2,340 $ 2,665

2nd Quarter Total

$ 30,300 1,060 $ 8,232 $ 6,890 $ 2,630 $ 0 $ 0.00

Required:

Required information

Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations and final answers to 2 decimal places.)

IGUANA, INC. Budgeted Income Statement For the Quarter Ending June

April	May	June	2nd Quarter Total
$ 0.00	$ 0.00	$ 0.00	$ 0.00
$ 0.00	$ 0.00	$ 0.00	$ 0.00

Required:
1. Compute the budgeted cash receipts for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.)

2. Compute the budgeted cash payments for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.)

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. (Leave no cell blank enter "0" wherever required. Round your answers to 2 decimal places.)

	April	May	June	2nd Quarter Total
Budgeted Cash Receipts				$ 0.00

	April	May	June	2nd Quarter Total
Budgeted Cash Payments				$ 0.00

	April	May	June	2nd Quarter Total
Beginning Cash Balance
Plus: Budgeted Cash Receipts				0.00
Less: Budgeted Cash Payments				0.00
Preliminary Cash Balance
Cash Borrowed / Repaid
Ending Cash Balance

Answer 1

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Calibri - 11 - AA BI U DA Autosum * Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells E11 - fic А April Month Sales=(A) Unit selling price=(B) Sales Price=(A)*(B) Iguana Inc. Schedule of Sales Revenue for Second Quarter | May June 270 320 30.00 $ 30.00 $ 8,100.00 $ 9,600.00 $ Quarter 420 30.00 $ 12,600.00 $ 1010 30.00 30,300.00 $ Production Budget April Quarter 420 270 Month Sales (Units) Add: Ending Inventory Total Needs Less: Beginning Inventory Production June 320 168 488 128 360 578 168 410 1010 158 1168 108 1060 Ending Inventory April (320*40%) (270*40%) Month Ending Inventory Beginning Inventory 0000 May (420*40%) (320*40%) June (395*40%) (420*40%) July Production=(sales+Ending Inventory-Beginning Inventory)=(395+178-158) = 89 90 Sheet1 Sheet2 Sheet3 Ready + BOJ 100% 0 ve 13:30 PA D ENG 08-11-2019

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = General Calibri -11 - A À BI U DA Wrap Text Merge & Center 1 1 - 3 Autosum * Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells E11 А - Fax April Raw Material Purchase Budget May 290 June 360 Quarter 410 1060 Month Production Raw Material required per unit Material required per unit Add: Ending Inventory Total Needs Less: Beginning Inventory Raw Material Purchase Raw Material cost per unit Cost of Raw Material Purchase 4240 124.5 4364.5 1160 108 1268 87 1052 3.00 $ 3,156.00 $ 1440 123 1563 108 13171 3.00 $ 39510 3,951.00 $ 1640 124.5 1764.5 123 1515.5 3.00 $ 4,546.50 $ 4115.5 3.00 12,346.50 Month Ending Raw Material Inventory Beginning Raw Material Inventory Raw Material Inventory April (360*30%) (290*30%) May (410*30%) (360*30%) June (415*30%) (410*30%) 109 110 111 Labor budget April 112 May June Quarter Months Sheet1 Sheet2 * Ready Sheet3 OD Đ 100% 0 13:30 ENG 08-11-2019 PA D

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Calibri - 11 - AA BI U DA Autosum * Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells E11 A 111 Labor budget 112 113 April Months Production=(i) Direct Labor hours required per unit=(ii) Total Direct Labor Hours=(iii)=(i)*(ii) Direct Labor rate per hours=(iv) Direct Labor cost=(iii)*(iv) Quarter 410 0.51 114 May 290 0.5 145 13.00 $ 1,885.00 $ June 360 0.5 180 13.00 $ 2,340.00 $ 205 1060 0.5 530 13.00 6,890.00 116 117 13.00 2,665.00 $ $ $ 118 119 120 April June Quarter 122 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) Manufacturing Overhead May 290.00 $ 0.50 $ 145.00 $ 700.00 $ 845.00 $ 124 125 126 360.00 0.50 180.00 700.00 880.00 $ $ $ $ 410.00 $ 0.50 $ 205.00 $ 700.00 $ 905.00 $ 1,060.00 0.50 530.00 700.00 1,230.00 127 131 Manufacturing Cost per unit 129 Direct Material(4ft* 3 per ft) 130 Direct Labor(.50*13) Variable Overhead 132 Fixed Overhead 133 Manufacturing Cost per unit in Sheet1 Sheet2 Sheet3 Ready 12.00 6.50 0.50 2.00 21.00 W + OD PA 100% U ve 13:30 ENG 08-11-2019 D

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General Calibri - 11 - AA BI U DA - Wrap Text Merge & Center Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles AutoSum - A Fill Sort & 2 Clear Filter Editing Find & Select Font Alignment Number Cells - fx E11 А G H 127 128 129 Manufacturing Cost per unit Direct Material(4ft* 3 per ft) Direct Labor(.50*13) Variable Overhead Fixed Overhead Manufacturing Cost per unit Fixed Overhead=($8400/4200) 12.00 6.50 0.50 2.00 21.00 130 131 132 133 134 135 136 137 138 139 April June Cost of good sold May 270 21.00 $ 5,670.00 $ Month Sales Manufacturing cost per unit Cost of good sold Sales* manufacturing cost per unit 140 Quarter 420 1010 21.00 $ 21.00 8,820.00 $ 21,210.00 320 21.00 6,720.00 $ $ $ 141 142 143 144 145 April June Quarter Selling & Administerative Expenses Budget May 270 0.50 $ 146 320 0.50 420 0.50 1010 0.50 147 $ $ $ Month Sales=(A) Variable Selling & Administerative Expenses=(B) Total Variable Selling & Administerative expenses=(C)=(A)*(B) Sheet1 Sheet2 Sheet30 148 135.00 $ 160.00 $ 210.00 700.00 L $ 505.00 C 0.00 isced collis odiisitertiscos 1 Ke Ready + OD PA 100% u 13:30 ENG 08-11-2019 D

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = General Calibri -11 - A À BI U - ->-A Wrap Text Merge & Center 1 D . 3 LE Paste Format Painter Clipboard AutoSum" AT A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells B143 А C D G H I Sales* manufacturing cost per unit 142 143 144 145 April June Quarter Selling & Administerative Expenses Budget May 270 0.50 $ 146 320 0.50 420 0.50 1010 0.50 147 $ $ Month Sales=(A) Variable Selling & Administerative Expenses=(B) Total Variable Selling & Administerative expenses=(C)=(A)*(B) Fixed Selling & administertive Expenses Total Selling & Administrative Expenses 148 135.00 $ 750.00 $ 885.00 $ 160.00 750.00 910.00 $ $ $ 210.00 $ 750.00 $ 960.00 $ 505.00 2,250.00 2,755.00 150 152 April 155 156 157 June $ $ $ Income Statement May 8,100.00 $ 5,670.00 $ 2,430.00 885.00 $ 1,545.00 Month Sales Revenue Cost of goods sold Gross Margin Selling & Administrative Expenses Net Income Gross Margin=Sales Revenue-Cost of goods sold 9,600.00 6,720.00 2,880.00 910.00 1,970.00 12,600.00 8,820.00 3,780.00 960.00 2,820.00 Quarter $ 30,300.00 $ 21,210.00 9,090.00 $ 2,755.00 6,335.00 158 $ $ 159 160 161 162 163 Sheet1 Sheet2 Sheet3 Ready + OD PA 100% U 13:31 ENG 08-11-2019 D