Please help, I have been stuck on the budget cash payment and cash budget. I just can't get the correct answer. Please provide step-by-step. I want to learn where I made the mistake. Thanks.

Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $3.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $15 per hour. Iguana has the following inventory policies:

Ending finished goods inventory should be 40 percent of next months sales. Ending direct materials inventory should be 30 percent of next months production.

Expected unit sales (frames) for the upcoming months follow:

March 355 April 410 May 460 June 560 July 535 August 585

Variable manufacturing overhead is incurred at a rate of $0.50 per unit produced. Annual fixed manufacturing overhead is estimated to be $6,000 ($500 per month) for expected production of 3,000 units for the year. Selling and administrative expenses are estimated at $550 per month plus $0.50 per unit sold.

Iguana, Inc., had $16,500 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 $5,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $310 in depreciation. During April, Iguana plans to pay $4,500 for a piece of equipment.

Given:

		April	May	June	2nd Quarter Total
1.	Budgeted Sales Revenue	$12,300	$13,800	$16,800	$42,900
2.	Budgeted Production in Units	430	500	550	1,480
3.	Budgeted Cost of Direct Material Purchases	$5,412	$6,180	$6,618	$18,210
4.	Budgeted Direct Labor Cost	$3,225	$3,750	$4,125	$11,100
5.	Budgeted Manufacturing Overhead	$715	$750	$775	$2,240
6.	Budgeted Cost of Goods Sold	$9,020	$10,120	$12,320	$31,460
7.	Total Budgeted Selling and Administrative Expenses	$755	$780	$830	$2,365.00

PA8-3 (Algo) Preparing Cash Budget [LO 8-4]

Required: 1. Compute the budgeted cash receipts for Iguana.

decimal places.)

Given:

	April	May	June	2nd Quarter Total
Budgeted Cash Receipts	$12,135.00	$13,650.00	$16,500.00	$42,285.00

2. Compute the budgeted cash payments for Iguana.

	April	May	June
Budgeted Cash Payments	?	?	?

3. Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $16,000 minimum cash balance.

Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $16,000 minimum cash balance. (Leave no cell blank enter "0" wherever required. Round your answers to 2 decimal places.)

	April	May	June	2nd Quarter Total
Beginning Cash Balance	?	?	?	?
Plus: Budgeted Cash Receipts	?	?	?	?
Less: Budgeted Cash Payments	?	?	?	?
Preliminary Cash Balance	?	?	?	?
Cash Borrowed / Repaid	?	?	?	?
Ending Cash Balance	?	?	?	?