Answered step by step
Verified Expert Solution
Question
1 Approved Answer
im confused on how to find these Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of
im confused on how to find these
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 $12 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 $0.20 per unit produced. Annual fixed manufacturing overhead is estimated to be $8.400 (\$700 per manth) for expected production of 6.000 units for the year. Selling and administrative expenses are estimated at $750 per month plus $0.50 per unit sold. Iguana. Inc., had $14,800 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 $4,500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $280 in depreciation. During April, Iguana plans to pay $4,300 for a piece of equipment. \begin{tabular}{|l|l|l|l|lr|} \hline & April & May & June & 2nd Quarter Total \\ \hline Budgeted Cash Receipts & & & & $ & 0.00 \\ \hline \end{tabular} 3. Prepare the cash budget for lguana. Assume the company can borrow in increments of $1,000 to maintain a $14,000 minimum cash balance Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started