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Iguana, Incorporated, manufactures bamboo picture frames that sell for $$25$ each. Each frame requires $4$ linear feet of bamboo, which costs $$2\mathrm{.}00$ per foot. Each frame takes approximately $30$ minutes to build, and the labor rate averages $$12\mathrm{.}00$ 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:

March $275$

April $250$

May $300$

June $400$

July $375$

August $425$

Variable manufacturing overhead is incurred at a rate of $$0\mathrm{.}30$ per unit produced. Annual fixed manufacturing overhead is estimated to be $$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\mathrm{.}60$ 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 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 $$2,000.$ All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $$150$ in depreciation. During April, Iguana plans to pay $$3,000$ for a piece of equipment.