Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $1.25 per foot. Each frame takes approximately 24 minutes to build, and the labor rate averages $10.00 per hour. Iguana has the following inventory policies:

Ending finished goods inventory should be 50 percent of next months sales.

Ending raw materials inventory should be 40 percent of next months production.

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

March

290

April

280

May

290

June

420

July

390

August

430

Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $6,600 ($550 per month) for expected production of 4,180 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.70 per unit sold.

Required:

Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit and final answers to 2 decimal places.)

IGUANA INC

BUDGETED INCOME STATEMENT

For The Quarter Ending June

April

May

June

2nd Quarter Total

?

?

?

?

?

Budgeted Gross Margin

?

?

Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $1.25 per foot. Each frame takes approximately 24 minutes to build, and the labor rate averages $10.00 per hour. Iguana has the following inventory policies:

Ending finished goods inventory should be 50 percent of next months sales.

Ending raw materials inventory should be 40 percent of next months production.

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

March

290

April

280

May

290

June

420

July

390

August

430

Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $6,600 ($550 per month) for expected production of 4,180 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.70 per unit sold.

Required:

Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit and final answers to 2 decimal places.)

IGUANA INC

BUDGETED INCOME STATEMENT

For The Quarter Ending June

April

May

June

2nd Quarter Total

?

?

?

?

?

Budgeted Gross Margin

?

?

?

Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $1.25 per foot. Each frame takes approximately 24 minutes to build, and the labor rate averages $10.00 per hour. Iguana has the following inventory policies:

Ending finished goods inventory should be 50 percent of next months sales.

Ending raw materials inventory should be 40 percent of next months production.

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

March

290

April

280

May

290

June

420

July

390

August

430

Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $6,600 ($550 per month) for expected production of 4,180 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.70 per unit sold.

Required:

Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit and final answers to 2 decimal places.)

IGUANA INC

BUDGETED INCOME STATEMENT

For The Quarter Ending June

April

May

June

2nd Quarter Total

?

?

?

?

?

Budgeted Gross Margin

?

?

?

Budgeted Net Operating Income

IGUANA INC
BUDGETED INCOME STATEMENT
For The Quarter Ending June
			April	May	June	2nd Quarter Total
?
?
?
?
?
Budgeted Gross Margin
?
?
?
Budgeted Net Operating Income

Budgeted Net Operating Income

?

Budgeted Net Operating Income