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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

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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 $2.00 per foot . Each frame takes approximately 30 minutes to build and the labor rate averages $12.00 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 April May June 275 250 300 400 375 425 July August Variable manufacturing overhead is incurred at a rate of $0 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 $0.60 per unit sold Iguana, Inc., had $10,800 cash on hand on April 1. or 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 materials purchases, Bo 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 aces Required: Complete Iguana's budgeted income statement for quarter 2 (Round cost per unit in intermediate calculations to 2 decimal places IGUANA, INC. Budgeted Income Statement For the Quarter Ending June April May June 2nd Quarter Total Budgeted Grous Margin 05 0S 05 0 Budgeted Net Operating income 05 $ 05 0

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