complete the iguana's budgeted income statement for quarter 2
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 $2.50 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 raw materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow March April May 370 440 490 590 565 615 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 $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 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 $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 plece of equipment Required: Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations and final answe 2 decimal places.) Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced, Annual fixed manufacturing overhead is estimated to be $7,200 (5600 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. lauana, Inc., had $11.200 cash on hand on April 1. Of its sales, 80 percent is in cash, or 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 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 $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 plece of equipment Required: 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 $ 11,000.00 $ 12,250.00 June $ 14,750.00 2nd Quarter Total $ 38,000.00 Budgeted Sales Revenue Budgeted Cost of Goods Sold $ 11,000.00 $ 12.250.00 $ 14,750.00 Budgeted Gross Margin $ 38,000.00 Budgeted Selling and Administrative Expenses Budgeted Net Operating Income 870.00 $ 10,130.00 895.00 11,355.00 945.00 $ 13,805.00 2,710.00 $ 35,290.00 $
