PA-8-3 please

. Supplies Inventory connect GROUP A PROBLEMS 8-1 Preparing Operating Budgets Operating Budgets guana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 inear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to ild, and the labor rate averages S12.00 per hour. Iguana has the following inventory policies: bu 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 July August 275 250 300 400 375 425 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. Required: Prepare the following for Iguana, Inc.,,for the second quarter (April, May, and June). Include each month as well as the quarter 2 total for each budget. 1. Sales budget. 2. Production budget. 3. Raw materials purchases budget. 4. Direct labor budget. 5. Nusisfactu.ing overicad budget. 6. Budgeted cost of goods sold 7. Selling and administrative expenses budget. PA8-2 Preparing Budgeted Income Statement Refer to the information in PA8-1. Required: Prepare Iguana's budgeted income statement for quarter 2 PA8-3 Preparing Cash Budget Refer to the information in PA8-1. Iguana, Inc., 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 raw materials purchases, 80 percent is paid for during the month purchased and 20 per- cent is paid in the following month. Raw 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 April, Iguana plans to pay $3,000 for a piece of equipment. Required: Prepare the following for Iguana for quarter 2: 1. Budgeted cash receipts. Include each month (April to June) as well as quarter 2 totals. 2. Budgeted cash payments. 3. Cash budget. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum cash balance. d PA8-4 Preparing Operating Budget Components Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more items is a cordless power handisaw. Each handisaw sells for $44. sales: Wesley expects the following unit January Febru March April May 2.000 2.200 2,700 2,500 1,900 ary