Required information The following information appies to the questions aisplayed below] Iguana, Inc, manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $200 per foot Each frame takes approximately 30 minutes to bulld, and the labor rate averages $14 per hour Iguana has the following inventory policles - Ending finished goods inventory should be 40 percent of next month's sales - Ending direct materials imventory should be 30 percent of next month's production. Expected unit saies (trames) for the upcoming months foliow: Varlable manufacturing overhead is incurred at a rate of $0.40 per untt produced. Annual fixed manufacturing overhead is estimated to be $8,400 (\$700 per month) for expected production of 4.000 units for the year. Selling and administrative expenses are estimated at $750 per month plus $0.50 per unit sold. Iguana, Inc, had $13,500 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. Or direct matenais purchases, 80 percent is paid for during the month purchased and 20 percent is pald in the following month. Direct materials purchases for March 1 totaled $2,800. All other operating costs are paid during the month ncurred Monthly fixed manufacturing overhead inciudes $260 in depreclation. During Aprili, Iguana plans to pay $2,500 or a plece of equipment. Complete iguana's budgeted income statement for quarter 2 (Round cost per unit in intermediate calculations ond final answers to Required: 2 decimal places.) Required information The following information appies to the questions aisplayed below] Iguana, Inc, manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $200 per foot Each frame takes approximately 30 minutes to bulld, and the labor rate averages $14 per hour Iguana has the following inventory policles - Ending finished goods inventory should be 40 percent of next month's sales - Ending direct materials imventory should be 30 percent of next month's production. Expected unit saies (trames) for the upcoming months foliow: Varlable manufacturing overhead is incurred at a rate of $0.40 per untt produced. Annual fixed manufacturing overhead is estimated to be $8,400 (\$700 per month) for expected production of 4.000 units for the year. Selling and administrative expenses are estimated at $750 per month plus $0.50 per unit sold. Iguana, Inc, had $13,500 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. Or direct matenais purchases, 80 percent is paid for during the month purchased and 20 percent is pald in the following month. Direct materials purchases for March 1 totaled $2,800. All other operating costs are paid during the month ncurred Monthly fixed manufacturing overhead inciudes $260 in depreclation. During Aprili, Iguana plans to pay $2,500 or a plece of equipment. Complete iguana's budgeted income statement for quarter 2 (Round cost per unit in intermediate calculations ond final answers to Required: 2 decimal places.)
