Iguana, Incorporated, manufactures bamboo picture frames that sell for $25 each. Each frame requires bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the lab $12.00 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: D March April May June July August 275 250 300 400 375 425 Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed mar estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Sellin expenses are estimated at $650 per month plus $0.60 per unit sold. R Iguana, Incorporated, had $10,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of th percent is collected during the month of the sale, and 50 percent is collected during the month fo Of direct materials purchases, 80 percent is paid for during the month purchased and 20 percent month. Direct materials purchases for March 1 totaled $2,000. All other operating costs are paid c incurred. Monthly fixed manufacturing overhead includes $150 in depreciation. During April, Igua for a piece of equipment. PA8-3 (Static) Preparing Cash Budget [LO 8-4] OCT Ei

Iguana. Incorporated, manufactures bamboo picture frames that sell for $25 each. Each frame require bamboo, which costs $200 per foot. Each frame takes approximately 30 minutes to buind, and the lat $1200 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 monti's production Expected unit sales (frames) for the upcoming months follow Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed ma estimated to be $7,200 ( $600 per month) for expected production of 4,000 units for the year. Sell expenses are estimated at $650 per month plus $0.60 per unit sold. Iguana, Incorporated, had $10,800 cash on hand on Aprill 1. Of its sales, 80 percent is in cash. Of percent is collected during the month of the sale, and 50 percent is collected during the month Of direct materials purchases, 80 percent is paid for during the month purchased and 20 percen month. Direct materials purchases for March 1 totaled \$2,000. All other operating costs are paid incurred. Monthly fixed manufacturing overhead includes \$150 in depreciation. During April, Igu for a piece of equipment. PA8-3 (Static) Preparing Cash Budget [LO 8-4] Answer is not complete. Iguana, Incorporated, manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $200 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $1200 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: 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, Incorporated, 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 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 \$2,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $150 in depreciation. During Aprit, Iguana plans to pay $3,000 for a plece of equipment