Required information (The following information applies to the questions displayed below.) Iguana, Inc., manufactures bamboo picture frames that sell for $25 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 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 April May June July August 375 450 500 600 575 625 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 5,000 units for the year. Selling and administrative expenses are estimated at $550 per month plus $0.70 per unit sold. Iguana, Inc., had $11,100 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 $5,500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $350 in depreciation. During April, Iguana plans to pay $2,000 for a piece of equipment. Required: Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations and final answers to 2 decimal places.) Answer is complete but not entirely correct. IGUANA, INC. Budgeted Income Statement For the Quarter Ending June April May June $ $ Budgeted Sales Revenue Budgeted Cost of Goods Sold 11,250.00 (9,900.00) X 12,500.00 (1,300.00) $ 15,000.00 (12,300.00) 2nd Quarter Total $ 38,750.00 (33,500.00) X $ $ $ $ Budgeted Gross Margin Budgeted Selling and Administrative Expenses 1,350.00 (865.00) 11,200.00 (900.00) 2,700.00 (970.00) 5,250.00 (2,735.00) Budgeted Net Operating Income 485.00 $ 10,300.00 $ 1,730.00 $ 2,515.00