Iguana, Incorporated, manufactures bamboo picture frames that sell for $$20$ each. Each frame requires $4$

linear feet of bamboo, which costs $$1\mathrm{.}50$ per foot. Each frame takes approximately $30$ minutes to bulld,

and the labor rate averages $$12$ per hour. Iguana has the following Inventory policles:

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:

Varlable manufacturing overhead is incurred at a rate of $$0\mathrm{.}20$ per unit produced. Annual fixed

manufacturing overhead is estlmated 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\mathrm{.}50$ 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 materlals purchases, $80$ percent is pald for during the month purchased and $20$ percent is pald

In the following month. Direct materlals purchases for March $1$ totaled $$2,400.$ All other operating costs

are pald during the month Incurred. Monthly fixed manufacturing overhead Includes $$320$ in

depreclation. During April, Iguana plans to pay $$4,100$ for a plece of equipment.

Required:

Complete Iguana's budgeted Income statement for quarter $2$

Note: Round cost per unlt In Intermedlate calculatlons to $2$ decimal places.