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% of next months sales
• Ending direct materials inventory should be 30% of next months production.

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

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

March	350
April	400
May	450
June	550
July	525
August	575

Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $10,800 ($900 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $950 per month plus $0.60 per unit sold

Iguana inc., had $11,900 cash on hand on April 1. Of its sales, 80% is in cash. Of the credit sales, 50% is collected during the month of the sale, and 50% is collected during the month following the sale.

Of direct materials purchases, 80% is paid for during the month purchased and 20% is paid in the following month. Direct materials purchases for March 1 totaled $4,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $300 in depreciation. During April, Iguana plans to pay $2,000 for a piece of equipment.

1. Compute the following for Iguana., Inc. for the second quarter. (April, May, June)

	April	May	June	1st Quarter Total
Budgeted Sales Revenue
Budgeted Production In Units
Budgeted Cost of direct Material Purchases
Budgeted Direct Labor Cost
Budgeted Manufacturing Overhead
Budgeted Cost of Goods Sold
Total Budgeted Selling and Administrative Expenses