Required information [The following information applies to the questions displayed below.] lguana, Incorporated, 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 $13 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: Variable manufacturing overhead is incurred at a rate of $0.50 per unit produced. Annual fixed manufacturing overhead is estimated to be $8,400 (\$700 per month) for expected production of 4,200 units for the year Selling and administrative expenses are estimated ot $750 per month plus $0.50 per unit sold. lguana, Incorporated, hed $11,000 cash on hand on April 1. Of its sales, 80 percent is in cash. Or the credit sales, 50 percent is coliected during the month of the sale, and 50 percent is collected during the month following the sale. Of direct moterials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Direct moterials purchases for March 1 totaled $3,000. All other operating costs are paid during the month incurred, Montrly fixed manufacturing overhead includes $170 in depreciation. During Aprib, iguana plans fo poy $3.200 for a plece of equipment. Required: Compute the following for Iguana, Incorporated, for the second quarter (April, May, and June). Required information [The following information applies to the questions displayed below.] lguana, Incorporated, 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 $13 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: Variable manufacturing overhead is incurred at a rate of $0.50 per unit produced. Annual fixed manufacturing overhead is estimated to be $8,400 (\$700 per month) for expected production of 4,200 units for the year Selling and administrative expenses are estimated ot $750 per month plus $0.50 per unit sold. lguana, Incorporated, hed $11,000 cash on hand on April 1. Of its sales, 80 percent is in cash. Or the credit sales, 50 percent is coliected during the month of the sale, and 50 percent is collected during the month following the sale. Of direct moterials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Direct moterials purchases for March 1 totaled $3,000. All other operating costs are paid during the month incurred, Montrly fixed manufacturing overhead includes $170 in depreciation. During Aprib, iguana plans fo poy $3.200 for a plece of equipment. Required: Compute the following for Iguana, Incorporated, for the second quarter (April, May, and June)
