I was able to solve for the sales budget but I dont know how to figure out how to get the budgeted production in units. Since I've been doing it wrong , everything else has been wrong.
Required: Compute the following for Iguana, Inc, for the second quarter (April, May, and June). 1. Budgeted Sales Revenue $ 11,000 $ 12,250 $ 14,?50 Budgeted Produdion in Units Budgeted Cost of Raw Material Purchases Budgeted Dired Labor Cost Budgeted Manufacturing Overhead Budgeted Cost of Goods Sold. Total Budgeted Selling and Adm. Expenses HP'E-"P'E-\"N Required: Complete lguana's budgeted income statement for quarter 2. {Round cost per unit in intermediate calculations and nal answers to 2 decimal places.) Budgeted GrossMargin 5: 000 5% [1,00 55 [l 55 [1,00 Budgeted Net Operating Income 0. 00 $ 2. Compute the budgeted cash payments for Iguana. (DO not round your intermediate calculations. ROLII'Id nal answers to 2 decimal places.) 3. Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1 .000 to maintain a $10,000 minimum cash balance. (Leave no cell blank enter "0" wherever required. Round your answers lo 2 decimal places.) Preliminary Cash Balance Cash Borrowed 1' Repaid Ending Cash Balance Iguana, Inc.r manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linearfeet of bamboo, which costs $2.50 per foot. Each frame takes approximately30 minutes to build, and the labor rale averages $'l4 per hour. Iguana has the following inventory policies: - Ending nished goods inventory should be 40 percent ofnext month's sales. - Ending raw materials inventory should be 30 percent ofnext month's production Expected unit sales (frames) for the upcoming months follow: March 370 April 440 May 490 June 590 July 565 August 515 Variable manufacturing overhead is incurred at a rate of $0.40 per unil produced. Annual fixed manufacturing overhead is estimated to be $7,200 [$500 per month] for expected production of 4500 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per un'rt sold. Iguana, lnc., had $11,200 cash on hand on April 'l. Ofits sales, 80 percent is in cash. Ofthe credit sales, 50 percent is collected during the month ofthe 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 xed manufacturing overhead includes $340 in depreciation During April. Iguana plans to pay $3500 for a piece of equipment
