Question

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 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:   

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.

     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.

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.) fill the missing spaces.

	April May June 2nd Quarter Total Beginning Cash Balance $11,000.00 $10,914.40 $10,058.00 Plus: Budgeted Cash Receipts 8,145.00 9,450.00 12,300.00 29,895.00 Less: Budgeted Cash Payments 10,230.60 8,306.40 9,210.40 27,747.40 Preliminary Cash Balance $8,914.40 $12,058.00 $13,147.60 Cash Borrowed / Repaid 2,000.00 (2,000.00) 0.00 Ending Cash Balance $10,914.40 $10,058.00 $13,147.60

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Due to character limit I am attaching the image.

Iguana
Answer 1	March	April	May	June	Total	July	August	Note
Budgeted Sales units	285.00	270.00	320.00	420.00		395.00	445.00	A
Sell price per unit	30.00	30.00	30.00	30.00		30.00	30.00	B
Budgeted Sales Revenue	8,550.00	8,100.00	9,600.00	12,600.00	30,300.00	11,850.00	13,350.00	C=A*B
Cash sale is 80%	6,840.00	6,480.00	7,680.00	10,080.00	24,240.00	9,480.00	10,680.00	D=C*80%
Credit sale is 20%	1,710.00	1,620.00	1,920.00	2,520.00	6,060.00	2,370.00	2,670.00	E=C*20%

Collection Budget	March	April	May	June	Total
Cash sale	6,840.00	6,480.00	7,680.00	10,080.00	24,240.00	See D
50% of Credit sale in the same month	855.00	810.00	960.00	1,260.00	3,030.00	F= 50% of E
50% of Credit sale in the following same month		855.00	810.00	960.00	2,625.00	G= 50% of E of previous month.
Total Scheduled Collections		8,145.00	9,450.00	12,300.00	29,895.00	H=D+F+G

Answer 2
Production Budget	March	April	May	June	Total	July	August
Budgeted Sales units	285.00	270.00	320.00	420.00		395.00	445.00	See A
Add: Closing	108.00	128.00	168.00	158.00		178.00		I= 40% of A of next month.
Less: Opening	114.00	108.00	128.00	168.00		158.00		J= 40% of A of same month.
Production Budget	279.00	290.00	360.00	410.00		415.00

Answer 3
Material Purchase Budget	April	May	June	Total	July
Production Budget	290.00	360.00	410.00		415.00	See J
Bamboo required per unit	4.00	4.00	4.00		4.00	K
Bamboo required	1,160.00	1,440.00	1,640.00		1,660.00	L=K*J
Add: Closing	432.00	492.00	498.00			M= 30% of L of next month.
Less: Opening	348.00	432.00	492.00			N= 30% of L of same month.
Material Purchase Budget	1,244.00	1,500.00	1,646.00

Direct Material Payment	March	April	May	June	Total
Material Purchase Budget		1,244.00	1,500.00	1,646.00		See N
Cost per foot		3.00	3.00	3.00		O
Direct Material cost	3,000.00	3,732.00	4,500.00	4,938.00	13,170.00	P=N*O
80% paid in same month	2,400.00	2,985.60	3,600.00	3,950.40	10,536.00	Q=P*80%
20% paid in next month		600.00	746.40	900.00	2,246.40	R= 20% of P of previous month.
Direct Material Payment		3,585.60	4,346.40	4,850.40	ekkarill92 Next > < Previous Related Solutions Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear... 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 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... Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear... 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 $11 per hour. Iguana has the 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:    March... Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear... Iguana, Inc., manufactures bamboo picture frames that sell for $30 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... Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear... Iguana, Inc., manufactures bamboo picture frames that sell for $30 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... Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear... 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 $15 per hour. Iguana has the 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:    March... Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear... Iguana, Inc., manufactures bamboo picture frames that sell for $30 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... Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear... 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 $11 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... Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear... Iguana, Inc., manufactures bamboo picture frames that sell for $30 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 $12 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... Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear... Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $3.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12 per hour. Iguana has the 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:    March... Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear... 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 $11 per hour. Iguana has the 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:    March... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions We are evaluating a project that costs $1.68 million, has a six-year life, and has no... In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted... You must evaluate a proposal to buy a new milling machine. The base price is $175,000,... “Triangle Guessing” game in Python The program accepts the lengths of three (3) sides of a... THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on... Consider a buffer system consisting of Benzoic acid (pKa = 4.20) and sodium benzoate, a) Would... Decision Variables S T Minimize 1.8S + 2.20T Subject to: Potassium 5S + 8T >= 200... ADVERTISEMENT About @ 2020 WizEdu