ter 8 Assignment Insbructions Questions 3-4 (of 4) Sare & Exi SB Problem PA8-1 to PA8- 3 The following information applies to the questions displayed below manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear foct of bamboo, which costs $2.50 per foot. Each frame takes approximately 3 0 minutes to build, and the labor rate averages $14 per hour. Iguana has th following inventory policies . Ending finished goods inventory should be 40 percent of next month's sales .Ending raw materials inventory should be 30 percent of next month's production Expected unit sales (frames) for the upcoming months follow 315 March April May June July August 380 505 Variable manufacturing overhead is incurred at a rate of $0.60 per unit produced. Annual fixed menufacturing overhead is estimated to be $7200 15600 per month) for expected production of 3,000 units for the year Sellng and adminatrative expenses are estimated at $650 per month plus $0.50 per unit sold. Iguana, Inc had $11,000 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 duning the month follawing the sale. g the month purchased and 20 percent is paid in the following month Raw materiais purchases for March 1 totaled $3,000. All other operating costs are paid during the month incurrec manufacturing overhead includes $230 in depreciation. During April, Iquana plans to pay $2.000 for a piece of equipment SB Probiem PA8-1 to PA8-3 Section Break 8:51 PM ^???di 4/2/2018 Tune here to search