Word bank for part 2:
budget sale revenue
budgeted cost of sold goods
budgeted sale returns and allowances
budgeted selling and administrative expense
budgeted contribution margin
budgeted intrest expense
Please organize answer.
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 $2.50 per foot Each frame takes approximately 30 minutes to build, and the labor rate averages $14 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 370 440 490 590 565 615 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4.500 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold Iguana, Inc, had $11,200 cash on hand on April 1. or its sales, 80 percent is in cash or the credit sales, 50 percentis 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 $4,500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $340 in depreciation. During April, Iguana plans to pay $3,500 for a piece of equipment Required: Compute the following for Iguana, Inc., for the second quarter (April, May, and June), July August 565 615 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,500 units for the year Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. Iguana, Inc., had $11,200 cash on hand on April 1. of its sales, 80 percent is in cash or 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 $4,500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $340 in depreciation During Apri Iguana plans to pay $3,500 for a plece of equipment. Required: Compute the following for Iguana, Inc., for the second quarter (April, May, and June). Answer is complete but not entirely correct. April May 1 s is 12.250 530 2 580 IS 3. 4. 5. Budgeted Sales Revenue Budgeted Production in Units Budgeted Cost of Direct Material Purchases Budgeted Direct Labor Cost Budgeted Manufacturing Overhead Budgeted Cost of Goods Sold Total Budgeted Selling and Administrative Expenses 11,000 $ 460 4,810 s 3,220 S 784S 8,230 X s 870 $ S $ 5,450 3,710 812 2nd June Quarter Total 14,750 S 38,000 1,570 5,815 $ 16,075 4,050 $ 10,990 832S 2,428 10,876 $ 28,187 945 $ 2,710.00 IS $ Is 6 S 9,081 Is OX 7 s 895 IS Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced Annual fixed manufacturing overhead is estimated to be $7.200 ($600 per month) for expected production of 4,500 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. Iguana, Inc., had $11,200 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. 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 $4,500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $340 in depreciation. During Apri, Iguana plans to pay 53,500 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 June $ April May 11,000.00 $ 12.250.00 8,229.91 x 9,080.72 $ 14,750.00 10,876.34 2nd Quarter Total $ 38,000.00 28.186.97 * Budgeted Sales Revenue Budgeted Cost of Goods Sold Budgeted Contribution Margin Budgeted Contribution Margin Budgeted Gross Margin Budgeted Sales Returns and Allowances Budgeted Interest Expense Budgeted Selling and Administrative Expenses Budgeted Net Operating Income IS $ 2,770.09 650.00 220.00 870.00 1,030 09 X 3,169.28 650.00 245.00 895.00 1,379.28 $ 3.873.66 S 650.00% 295.00 945.00 9,813.03 1.950.00 750,00 2,710 00 4,393.03 $ $ $ 1,983.66 $
