In: Accounting
The following information applies to the questions displayed below.] Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $1.50 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 360 April 420 May 470 June 570 July 545 August 595 Variable manufacturing overhead is incurred at a rate of $0.20 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. Iguana, Inc., had $10,800 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 $2,400. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $320 in depreciation. During April, Iguana plans to pay $4,100 for a piece of equipment.
1.
PA8-1 Preparing Operating Budgets [LO 8-3a, b, c, d, e, f, g]
Required:
Compute the following for Iguana, Inc., for the second quarter
(April, May, and June).
april may june
1 Budgeted sales revenue
2 budgeted production in unites
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. Espenses
2.
PA8-2 Preparing Budgeted Income Statement [LO 8-3h]
Required:
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
1.
2.
3.
4.
BUDGETED GROSS MARGIN
1.
2.
3.
BUDGETED NET OPERATING INCOME
3.
Required:
1. Compute the budgeted cash receipts for Iguana.
(Do not round your intermediate calculations. Round final
answers to 2 decimal places.)
APRIL MAY JUNE 2ND QUATER TOTAL
BUDGETED CASH RECEIPTS
2. Compute the budgeted cash payments for Iguana.
(Do not round your intermediate calculations. Round final
answers to 2 decimal places.)
APRIL MAY JUNE 2ND QUARTER TOTAL
BADGETED CASH PAYMENTS
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
Beginning cash balance
plus: budgeted cash receipts
less: budgeted cash payments
preliminary cash balance
cash borrowed/repaid
ending cash balance
i need exact answer. i appreciate it.
Budgeted incomes statement of IGUANA INC | |||||||
PARTICULARS | APRIL | MAY | JUNE | TOTAL | |||
BUDGETED SALES REVENUE | $ 8,400.00 | $ 9,400.00 | $ 11,400.00 | $ 29,200.00 | |||
LESS: BUDGETED COST OF GOOD SOLD | $ 5,880.00 | $ 6,580.00 | $ 7,980.00 | $ 20,440.00 | |||
BUDGETED GROSS MARGIN | $ 2,520.00 | $ 2,820.00 | $ 3,420.00 | $ 8,760.00 | |||
LESS:BUDGETED SELLING AND ADMINISTRATIVE EXPENSES | $ 860.00 | $ 885.00 | $ 935.00 | $ 2,680.00 | |||
BUDGET NET INCOME | $ 1,660.00 | $ 1,935.00 | $ 2,485.00 | $ 6,080.00 | |||
BUDGETED COST OF GOODS SOLD | |||||||
BUDGET MANUFACTURING COST | PER UNIT | ||||||
DIRECT MATERIAL | 6 | 1.5x4 | |||||
DIRECT LABOUR | 6 | 30/60*$12 | |||||
VARIABLE MANUFACTURING OVERHEAD | 0.2 | ||||||
FIXED MANUFACTURING OVERHEAD | 1.8 | 7200/4000 | |||||
BUDGET MANUFACTURING COST | PER UNIT | 14 | 6+6+0.2+1.8 | ||||
PARTICULARS | APRIL | MAY | JUNE | TOTAL | |||
BUDGED SALES | 420 | 470 | 570 | 1460 | |||
BUDGETED MANUFACTURING COST X | 14 | 14 | 14 | 14 | |||
BUDGETEDCOST OF GOODS SOLD | 5880 | 6580 | 7980 | 20440 | |||
BUDGETED SELLING AND ADMINISTRATIVE EXP | |||||||
PARTICULARS | APRIL | MAY | JUNE | TOTAL | |||
BUDGETED SALE UNIT | 420 | 470 | 570 | 1460 | |||
VARIABLE SELLING AND ADMINISTRATIVE EXP X | 0.5 | 0.5 | 0.5 | 0.5 | |||
BUDGETED VARIABLE SELLING AND ADM EXP | 210 | 235 | 285 | 730 | |||
BUDGETED FIXED SELLING AND ADM EXP + | 650 | 650 | 650 | 1950 | |||
TOTAL SELLING AND ADM EXP | 860 | 885 | 935 | 2680 | |||
BUDGETED SELLING REVENUE | |||||||
PARTICULARS | APRIL | MAY | JUNE | TOTAL | |||
BUDGETED SALE UNIT | 420 | 470 | 570 | 1460 | |||
UNIT SALE PRICE x | 20 | 20 | 20 | 20 | |||
BUDGETED SALES REVENUE | 8400 | 9400 | 11400 | 29200 |