lguana, 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 $11 per hour. Iguana has the following iriventory policies Ending finished goods inventory should be 40 percent of next month's sales . Ending raw materlals inventory should be 30 percent of next month's production Expected unit sales (frames) for the upcoming mnths follow March April May June July August 290 280 430 405 455 Varlable manufacturing overhead Is incurred at a rate of $0 60 per unit produced Annual fixed manufacturing overhead is estimated to be $7200 ($600 per month) for expected production of 3000 units for the year Selling and administrative expenses are estimated at $700 per month plus $050 per unit sold lguana, Inc. had $11,100 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 raw materials purchases, 80 percent is paid tor during the month purchased and 20 percent is paid in the tollowing month. Raw materials purchases for March 1 totaled $2000. All other operating costs are paid during the month incurred. Monthly tixed manufacturing overhead includes $180 in depreciation. During Aoril, Iguana plans to pay $3,300 ora piece of equipment. Required: Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations and final answers to 2 decimal places.) IGUANA, INC Budgeted Income Statement For the Quarter Ending June 2nd Quarter Total April May June Budgeted Gross Margin 0.00 0.00 0.00 $ 0.00 Budgeted Net Operating Income 0.000.00 0.00 0.00 Iguar inc. anutac u ee bamboo picture trames ar se l fo 5 each Each fra e equires 4 neo feet or bon boo nic costs 2 DD oe toot tach 1 me take6 ro i ately 30 min nes to build and the labor re over e $" per hour guana has the toll ng inventory polices Ending finished goods Invenrory shaud be 40 percens of next month sales Ending raw materials Inverrory should he 3d percent of next month s praduction Expected unit salos (framas) for tha upcoming months folawr Juty Voriable manufacturing overhead is incurred ot a rare of 5050 per unit produced. Arnuol fixed manutacturing overheod is estimared to be ST.200 ($600 per montn for expecied production of 3.000 units for the year. Seling ond administrotive expenses are estimaed ot $700 per month plus SD 50 per unit sold Iguano, Ihc. nod $11C0 cosh on hand on April 1. Of its sales, 80 percent is in cosh Or the credit soles, 50 percenm is collected dluring the month of the sole, ond 50 percent is collectec during the month following the sole Ce row materials purchases, 8D percent is poid for during the month purchased ond 20 percent is paid in the tolowing month. Row materiols purchases for Morch 1 totoled S2000 All other operoting cosns a e oaid during the month incurred Mothly fixed monufacturing overheod inclucles $180 in depreciation During Apri, Iguona plans to poy 3.300 for 0 piece of equipment