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Iguana, inc, manutactures bamboo picture frames that sell for $$25$ each. Each frame requires $4$ linear feet of bamboo, which costs $$2\mathrm{.}50$ per foot. Each frame takes approxlmately $30$ minutes to bulld, and the labor rate averages $$14$ per hour. Iguma has the following inventory policies:

Ending finished goods inventory should be $40$ percent of next month's sales.

Ending direct materlals inventory should be $30$ percent of next month's production.

Expected unit sales $($frames$)$ for the upcorring months follow.

$\backslash$table$[[$March$,315],[$Aprit$,330],[$May$,360],[$June$,460],[$July$,455],[$August$,305]]$

Variable manufacturing overhead is incurred at a rate of $$060$ per unit produced. Annual foced manufacturing overhoad is estimeted to be $$7,200($$$600$ per month$)$ for expected production of $3,000$ units for the year. Selling and administrative expenses are estimated at $$650$ per month pius $$050$ per unit sold.

Igume, Inc, had $$11,000$ cesh on hend on April $1$ Or is saies, $80$ percent is in cash. Of the credit sales, $50$ percent is collected during the month of the sale, and $50$ percert is ceilected during the month following the sale.

Of drect materiak purchases, $80$ percert is paid for dirmg the month purchesed and $20$ percent is paid in the following month. Direct materials purchases for Marth $1$ totaled $$3,000.$ All other operating costs are paid during the month for a piece of equipment.

iGUARa, wic.