Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has the following inventory policies:

Ending finished goods inventory should be 40 percent of next months sales.

Ending raw materials inventory should be 30 percent of next months production.

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

March	275
April	250
May	300
June	400
July	375
August	425

Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.60 per unit sold. Iguana, Inc., had $10,800 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 $2,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $150 in depreciation. During April, Iguana plans to pay $3,000 for a piece of equipment.

lguana, Inc., manufactures bamboo picture framos that sell for $25 cach. Each frame requires 4 linear foot of bamboo, which costs $2.00 per foot. Each frame takes approximatoly 30 minutcs to build, and the labor rate averages $12.00 per hour. Iguana has the ollowirng nventory policies Ending finished goods inventory should be 40 percent of next month's sales Encding rw materials inverntory should he 30 percent of rnext month's production Expected urnit sales (rames for the upcoring monhs follow ALgus Varlable manufacturing overhead is Incumed at a rate of S0.30 per unlt producedl. Annual fixed manufacturing overhead Is estimated to be S7,200 (S600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at 5650 per month plus $0.60 por unit sold Iguana, Inc, had $10,B00 cash on hand on April 1. Ofits sales, BO percent is in cash. Or the credit sales, 50 pe cent is collected during the month of the sale, and 50 percent is co ected during the month following the sele Of raw materials purchases, 80 percent is paid for dluring the month purchased and 20 percent is pald in the following month. Raw materials purchases for March 1 totaled $2.000. All other operating costs are pald during the month incurred. Monthly fixed manufacturing overhead ncludes 150 n deprecation. During April, Iguana plans to pay $3,000 for a piece of equpment