Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 $13 per hour. Iguana has the following inventory policies Ending finished goods inventory should be 40 percent of next month's sales Ending direct materials inventory should be 30 percent of next month's production Expected unit sales (frames) for the upcoming months follow: March April May June 310 320 370 470 445 495 July August Variable manufacturing overhead is incurred at a rate of $0.50 per unit produced. Annual fixed manufacturing overhead is estimated to be $4.800 ($400 per month) for expected production of 4,800 units for the year. Selling and administrative expenses are estimated at $500 per month plus $0 50 per unit sold. Iguana, Inc, had $10,500 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 percentis collected during the month following the sale of direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month Direct materials purchases for March 1 totaled $2,200. All other operating costs are paid during the month incurred Monthly fixed manufacturing overhead includes $220 in depreciation. During April, Iguana plans to pay $3,700 for a piece of equipment 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 $10,000 minimum cash balance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the budgeted cash receipts for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places) April May June 2nd Quarter Total Budgeted Cash Receipts 0.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial accounting

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

8th Edition

9780135114933, 136108865, 978-0136108863

More Books

Students also viewed these Accounting questions

Question

Draw the truth table

Answered: 1 week ago

Question

Prove Equation (5.22).

Answered: 1 week ago

Question

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago

Question

Identify the job expectancy rights of employees.

Answered: 1 week ago