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Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 3 linear feet of bamboo, which costs $3.00 per foot. Each

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Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 3 linear feet of bamboo, which costs $3.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $11.00 per hour. Iguana has the following inventory policies Ending finished goods inventory should be 40 percent of next month's sales. Ending raw materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow: March April May June 405 380 430 530 480 August Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $8,000 ($800 per month) for expected production of 5,000 units for the year. Selling and administrative expenses are estimated at $780 per month plus $0.70 per unit sold Iguana, Inc., had $12,100 cash on hand on April 1... Of its sales, 80 percent is in cash. Of the credt sales, 50% is collected during the month of the sale, and 50% 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 $3,300. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $280 in depreciation. During April, lguana plans to pay $4,300 for a piece of equipment. 1. Compute the budgeted cash receipts for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.) April 9,562.50 10,625.00 $ 13,000.00 33,187.50 May June 2nd Quarter Total Budgeted Cash Receipts 2. Compute the budgeted cash payments for lguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.) June 2nd Quarter Total 0.00 April May Budgeted Cash Payments 3. Prepare the cash budget for lguana. Assume the company can borrow in increments of $1,000.00 to maintain a $11,000.00 minimum cash balance. April May June 2nd Quarter Total Beginning Cash Balance Plus: Budgeted Cash Receipts Less: Budgeted Cash Payments Preliminary Cash Balance Cash Borrowed/Repaid Ending Cash Balance 0.00 0.00

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