3. [The following information applies to the questions displayed below.)guana, Incorporated, manufactures bamboo picture frames that sell for $25 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 $12 per hour guana nas the following inventory policies.? Ending finished goods inventory should be 40 percent of next monthis sales.- Ending direct materials inventory should be 30 percent of next month's production.Expected unit sales (frames) for the upcoming months follow: Mancn 320April 340May 390June 490July 465August 515Variable manufacturing overhead is incurred at a rate of $0.20 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold.Iguana, Incorporated, had $10,500 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 $2,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $240 in depreciation. During April, Iguana plans to pay $2,000 for a piece of equipment.Required:Complete Iguanas budgeted income statement for quarter 2.Note: Round cost per unit in intermediate calculations to 2 decimal places.

Shadee Corporation expects to sell 550 sun shades in May and 390 in June. Each shade sells for $153. Shadee's beginning and ending finished goods inventories for May are 65 and 55 shades, respectively. Ending finished goods inventory for June will be 55 shades. Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 80 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $12,000 per month, and variable manufacturing overhead is $12 per unit produced. Additional information: Selling costs are expected to be 11 percent of sales. . Fixed administrative expenses per month total $1,500. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places SHADEE CORPORATION Budgeted Income Statement May June Budgeted Gross Margin Budgeted Net Operating Income Iguana, Incorporated, manufactures bamboo picture frames that sell for $2b each. Each frame requires 4 linear feet of bamboo, which costs $3.00 per foot. Each frame to per hour. Iguana has the following inyourname takes approximately 30 minutes to build, and the labor rate averages $12 owing inventory policies: Required: . 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. Complete Iguana's budgeted income statement for quarter 2. Note: Round cost per unit in intermediate calculati e calculations to 2 decimal places. Expected unit sales (frames) for the upcoming months follow: IGUANA, INCORPORATED April 348 Budgeted Income Statement May For the Quarter Ending June lugust April May June 2nd Quarter Variable manufacturing ov ng overhead is incurred at a rate of $0.20 per unit produced. Annual fixed manufacturing overhead is midted to be .200 ($600 per month) for expected production of 4,000 units for the very sun expenses are estimated at $650 per month plus $0.50 per unit sold. of 4.000 units for the year. Selling and administrative Iguana, Incorporated, had $10,500 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. Budgeted Gross Margin Of direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following onthly fixed ma month. Direct materials purchases for March 1 totaled $2,000. All other operating costs are paid during the month for a piece of equipment. ufacturing overhead includes $240 in depreciation. During April, Iguana plans to pay $2.000 Budgeted Net Operating Income Required: Compute the following for Iguana, Incorporated, for the second quarter (April, May, and June) April May 2nd Quarter 1. Budgeted Sales Revenue 2. Budgeted Production in Units 3. Budgeted Cost of Direct Material Purchases 4 . Budgeted Direct Labor Cost 5. Budgeted Manufacturing Overhead 6. Budgeted Cost of Goods Sold 7. Total Budgeted Selling and Administrative Expense