Question

Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.50 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: 370 440 490 March April May June July August 590 565 615 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,500 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. Iguana, Inc., had $11,200 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 $4,500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $340 in depreciation. During April, Iguana plans to pay $3,500 for a piece of equipment. < Prev 3 of 3

Answer 1

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = General Calibri - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 - } Autosum Paste 9 % 8... Insert Delete Format Conditional Format Formatting as Table Styles Format Painter Clipboard Cell Styles 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells 1134 - А F April Month Sales=(A) Unit selling price=(B) Sales Price=(A)*(B) Iguana Inc. Schedule of Sales Revenue |May June 440 490 25.00 $ 25.00 $ 11,000.00 $ 12,250.00 $ Quarter 590 1520 25.00 $ 25.00 14,750.00 $ 38,000.00 $ April Iguana Inc. Production Budget May 440 196 636 176 460 Month Sales (Units) Add: Ending Inventory Total Needs Less: Beginning Inventory Production Quarter 590 226 June 490 236 726 196 530 816 1520 226 1746 176 1570 236 580 July Production=($565+246(615*40%)- 226) 585 85 Ke Ready Sheet1 Sheet2 Sheet30 HP JumpStart Đ 1 2 Et e e $ 9 OD ol A 100% ENG 0 12-11-2019 O

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = General Calibri - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 - } Autosum Paste Insert Delete Format Conditional Format Formatting as Table Styles Format Painter Clipboard Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells - fe 1134 А C 86 Month Ending Inventory Beginning Inventory April (490*40%) (440*40%) Ending Inventory May (590*40%) (490*40%) June (565*40%) (590*40%) April Iguana Inc. Raw Material Purchase Budget May 460 June 530 Quarter 580 1570 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 1840 159 1999 138 1681 2.50 $ 4,202.50 $ 2120 174 2294 159 1946 2.50 4,865.00 2320 6280 175.5 175.5 2495.5 6455.5 174 138 2144.5 6104.5 2.50 $ 2.50 5,361.25 $ 15,261.25 102 103 104 $ $ Sheet1 Sheet2 Sheet3 Ready 90 ^ H gol 100% 0 . 11:12 ENG 12-11-2019

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = General Calibri - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 - } Autosum Paste Insert Delete Format Conditional Format Formatting as Table Styles Format Painter Clipboard Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells 1134 А 107 108 Month Ending Raw Material Inventory Beginning Raw Material Inventory 109 Raw Material Inventory May (580*30%) (530*30%) April (530*30%) (460*30%) June (585*30%) (580*30% 111 Iguana Inc. Labor budget April May June Months Production=(A) Quarter 580| 530 4601 1570 3 116 117 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) 0.5 2301 14.00 $ 3,220.00 $ 0.5 265 14.00 $ 3,710.00 $ 0.5 290 14.00 4,060.00 0.5 785 $ 14.00 $ 10,990.00 122 Iguana Inc. Manufacturing Overhead May 460.00 $ April 123 124 Month Production=(A) Sheet1 Sheet2 Sheet3 production=(a) June $ Quarter $ 1,570.00 530.00 580.00 0 Ready OU 100% + 0 11:12 12-11-2019 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = * General Calibri - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 - } Autosum Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells 1134 А 121 122 Iguana Inc. Manufacturing Overhead | May 460.00 $ June 530.00 $ Quarter 580.00 $ 1,570.00 0.40 $ 0.40 $ 0.40 $ 0.40 Month April Production=(A) Variable Manufacturing Overhead per unit=(B) Total Variable Manufacturing Cost=C )=(A)*(B) Fixed Manufacturing Overhead=(D) Total Administrative Expenses (C)+(D) | $ 184.00 $ 600.00 $ 784.00 $ 212.00 $ 600.00 $ 812.00 $ 232.00 600.00 832.00 $ $ $ 628.00 600.00 1,228.00 IGUANA INC. Selling & Administerative Expenses Budget | May 440 490 April June Quarter 590 1520 Month Sales=(A) Variable Selling & Administerative Expenses=(B) Total Variable Selling & Administerative Sheet1 Sheet2 Sheet3 135 0.50 $ 0.50 $ 0.50 $ 0.50|| Ready OO 100% 0 u 11:13 ENG 24 12-11-2019 . OPAO

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = General Calibri - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 - } Autosum Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells fic 1134 А 131 132 IGUANA INC. Selling & Administerative Expenses Budget | May 440 490 June Quarter 134 590 1520 135 0.50 $ 0.50 $ 0.50 $ 0.50 Month April Sales=(A) Variable Selling & Administerative Expenses=(B) Total Variable Selling & Administerative expenses=(C)=(A)*(B) Fixed Selling & administertive Expenses $ Total Selling & Administrative Expenses | $ 220.00 650.00 870.00 $ $ $ 245.00 $ 650.00 5 895.00 $ 295.00 650.00 945.00 $ $ $ 760.00 1,950.00 2,710.00 138 139 140 April Month Accounts Receivable(March) April Sales May Sales June Sales Total Cash collection Sheet1 Sheet2 Sheet3 Iguana Inc. Schedule of expected Cash collection May June 925.00 9,900.00 $ 1,100.00 11,025.00 $ 144 145 146 147 Quarter $ 925.00 $ 11,000.00 $ 12,250.00 $ 13,275.00 $ 37,450.00 1,225.00 13,275.00 14,500.00 10,825.00 $ 12,125.00 $ Ready + BO gl ^ 100% u ENG 0 11:13 12-11-2019

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = Calibri - 14 - A À BI U - ->-A Wrap Text General 1 - } Merge & Center -- 9% , 108 1093 Formationas table - stortes inser bedroom Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Autosum 2 clear Format Painter Clipboard 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells 1134 A 140 141 April June 142 143 Iguana Inc. Schedule of expected Cash collection |May 925.00 9,900.00 $ 1,100.00 11,025.00 $ Month Accounts Receivable(March) April Sales May Sales June Sales Total Cash collection S Quarter $ 925.00 $ 11,000.00 $ 12,250.00 $ 13,275.00 $ 37,450.00 145 $ 1,225.00 13,275.00 14,500.00 10,825.00 $ 12,125.00 $ April May June Month Accounts Receivable(March Credit sales*20%) April Sales May Sales June Sales (370*25*20%*50%) (11000*80%)+(1100001 (11000*80%*50%) (12250*80%)+(12250*20%*50%) (12250*20%*50%) (14750*80%)+(14750*20%*50%) 154 156 157 Budgeted cash payment for raw material purchased April May Month Sheet1 Sheet2 June Quarter Sheet3 Ready OO 100% 0 12-11-2019

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = * General Calibri - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 1 - 3 Autosum * Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells 1134 fic А 156 June 158 Month March purchase April Purchase May Purchase June Purchases Total cash disbursement Budgeted cash payment for raw material purchased April May $ 900.00 3,362.00 $ 840.50 3,892.00 Quarter $ 900.00 $ 4,202.50 973.00 $ 4,865.00 4,289.00 $ 4,289.00 5,262.00 $ 14,256.50 160 $ 4,262.00 $ 4,732.50 $ 164 165 June Month March purchase April Purchase May Purchase June Purchases Cash paid for Raw Material purchased April May (4500*20%) ($4202.50*80%) ($4202.50*20%) ($4865*80%) ($4865*20%) ($5361.25*80%) 169 172 April Cash Budget May $ $ Month Beginning Balance Add: Collection from customers Sheet1 Sheet2 Sheet3 173 174 ► Ready 11,200.00 10,825.00 10,539.00 12,125.00 June $ $ $ Quarter 12,664.50 $ 11,200.00 14,500.00 $ 37,450.00 OU 100% 0 PA D ENG 12-11-2019 11:13

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = Calibri - 14 - A À BI U - ->-A Wrap Text Merge & Center General o n 1 - } conditional Format se insert Delete Format o Autosum 2 Clear Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard 2 Clear Sort & Filter Editing Find & Select einen Font Alignment Number Cells 1134 - fax А E F 171 Cash Budget May 11,200.00 $ 10,825.00 $ 22,025.00 $ June 10,539.00 $ 12,125.00 $ 22,664.00 $ Quarter 12,664.50 $ 11,200.00 14,500.00 $ 37,450.00 27,164.50 $ 48,650.00 174 175 176 177 179 Month April 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/Deficiency of receipts over disbur $ Financing: Borrowings Repayments Total Financing Cash Balance ,ending $ 4,732.50 $ 3,710.00 $ 662.00 $ 895.00 $ 180 4,262.00 $ 3,220.00 $ 634.00 $ 870.00 $ 3,500.00 12,486.00 $ 9,539.00 $ 5,262.00 $ 14,256.50 4,060.00 $ 10,990.00 682.00 $ 1,978.00 945.00 $ 2,710.00 $ 3,500.00 10,949.00 $ 33,434.50 16,215.50 $ 15,215.50 181 182 9,999.50 $ 12,664.50 $ 183 185 1,000.00 186 $ 1,000.00 (1,000.00) $ (1,000.00) (1,000.00 $ 15,215.50 $ 15,215.50 1,000.00 10,539.00 $ 12,664.50 $ 188 189 Sheet1 Sheet2 Sheet3 0 Ready BOJ 100% u u 11:13 op ^ O ENG 12-11-2019 S