Chapter $8$ Homework

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$\backslash$table$[[$March$,325],[$April$,350],[$May$,400],[$June$,500],[$July$,475],[$August$,525]]$

Variable manufacturing overhead is incurred at a rate of $$0\mathrm{.}30$ per unit produced. Annual fixed manufacturing overhead is estimated to be $$6,000($ $$500$ per month$)$ for expected production of $5,000$ units for the year. Selling and administrative expenses are estimated at $$550$ per month plus $$0\mathrm{.}60$ per unit sold.

Iguana, Incorporated, had $$12,000$ 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.

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 $$2,000.$ All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $$250$ in depreciation. During April, Iguana plans to pay $$4,000$ for a piece of equipment.

Required:

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

$\backslash$table$[[1.$ Budgeted Sales Revenue,April,May,June,$\backslash$table$[[2$nd Quarter$],[$Total$]]],[$$$,7,000,$$$,8,000,$$$,10,000,$$$,25,000],[2.$ Budgeted Production in Units,,,,,,,,$0],[3.$ Budgeted Cost of Direct Material Purchases,,,,,,,$$,0],[4.$ Budgeted Direct Labor Cost,,,,,,,$$,0],[5.$ Budgeted Manufacturing Overhead,,,,,,,$$,0],[6.$ Budgeted Cost of Goods Sold,,,,,,,$$,0],[7.$ Total Budgeted Selling and Administrative Expense,,,,,,,$$,0]]$