Homework: $[$The following information applles to the questions displayed below.$]$

Iguana, Incorporated, manufactures bamboo plcture frames that sell for $$20$ each. Each frame requires $4$ linear feet of

bamboo, which costs $$1\mathrm{.}50$ per foot. Each frame takes approximately $30$ minutes to buld, and the labor rate averages $$13$

per hour. Iguana has the following Inventory policles:

Ending finished goods Inventory should be $40$ percent of next month's sales.

Ending direct materlals Inventory should be $30$ percent of next month's production.

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

Varlable manufacturing overhead is incurred at a rate of $$0\mathrm{.}30$ per unit produced. Annual fixed manufacturing overhead is

estimated to be $$7,200($ $$600$ per month$)$ for expected production of $6,000$ units for the year. Selling and administrative

expenses are estimated at $$650$ per month plus $$0\mathrm{.}50$ per unit sold.

Iguana, Incorporated, had $$15,800$ cash on hand on Aprill $1.$ 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 materlals purchases, $80$ percent is paid for during the month purchased and $20$ percent is paid in the following

month. Direct materlals purchases for March $1$ totaled $$3,000.$ All other operating costs are pald during the month

Incurred. Monthly fixed manufacturing overhead Includes $$290$ in depreciation. During April, Iguana plans to pay $$3,000$

for a plece of equipment.

Required:

$1.$Compute the following for Iguana, Incorporated, for the second quarter $($April$,$ May, and June$).$

Answer is complete but not entirely correct.

Required:

$1.$Compute the budgeted cash receipts for Iguana.

$2.$Compute the budgeted cash payments for Iguana.

$3.$Prepare the cash budget for Iguana. Assume the company can borrow in increments of $$1,000$ to maintain a $$15,000$ minimum cash

balance. No interest is charged if the loan is paid off by the end of the next quarter.

Answer is not complete.

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