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Iguana, Inc., 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 months sales. Ending raw materials inventory should be 30 percent of next months production.

Expected unit sales (frames) for the upcoming months follow:

March 285 April 270 May 320 June 420 July 395 August 445

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 at $750 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 during the month following the sale.

Required:

Compute the following for Iguana, Inc., for the second quarter (April, May, and June).

Required information

Of raw materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Raw materials purchases for March 1 totaled $3,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $170 in depreciation. During April, Iguana plans to pay $3,200 for a piece of equipment.

1. Budgeted Sales Revenue

2. Budgeted Production in Units

3. Budgeted Cost of Raw Material Purchases

4. Budgeted Direct Labor Cost

5. Budgeted Manufacturing Overhead

6. Budgeted Cost of Goods Sold.

7. Total Budgeted Selling and Adm. Expenses

April May June

$ 8,100 $ 9,600 $ 12,600 290 360 410

$ 3,732 $ 4,500 $ 1,885 $ 2,340 $ 2,665

2nd Quarter Total

$ 30,300 1,060 $ 8,232 $ 6,890 $ 2,630 $ 0 $ 0.00

Required:

Required information

Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations and final answers to 2 decimal places.)

IGUANA, INC. Budgeted Income Statement For the Quarter Ending June

April	May	June	2nd Quarter Total
$ 0.00	$ 0.00	$ 0.00	$ 0.00
$ 0.00	$ 0.00	$ 0.00	$ 0.00

Required: 1. Compute the budgeted cash receipts for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.)

2. Compute the budgeted cash payments for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.)

3. Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum cash balance. (Leave no cell blank enter "0" wherever required. Round your answers to 2 decimal places.)

	April	May	June	2nd Quarter Total
Budgeted Cash Receipts				$ 0.00

	April	May	June	2nd Quarter Total
Budgeted Cash Payments				$ 0.00

	April	May	June	2nd Quarter Total
Beginning Cash Balance
Plus: Budgeted Cash Receipts				0.00
Less: Budgeted Cash Payments				0.00
Preliminary Cash Balance
Cash Borrowed / Repaid
Ending Cash Balance