Iguana. Inc., manufactures bamboo picture frames that sell for 521 each. Each fr
ID: 2444959 • Letter: I
Question
Iguana. Inc., manufactures bamboo picture frames that sell for 521 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 24 minutes to build, and the labor rate averages $11.00 per how 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: Variable manufacturing overhead is incurred at a rate of 5.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,500.00 ($625.00 per month) for expected production of 4.112 units for the yew. Selling and administrative expenses we estimated at $680.00 per month plus $.40 per unit sold. Required: Compute the following for Iguana. Inc.. for the second epistler (April. May. and Junes (Round your dollar amounts to 2 decimal places and your per unit amounts to the nearest whole number. Round intermediate calculations to 1 decimal place for direct labor hours and to 2 decimal places for per unit costs.)Explanation / Answer
Particulars March April May June July August 2nd Q Total Budgeted Unit sales 280.00 260.00 320.00 400.00 380.00 420.00 980.00 Sales Revenue@21pu 5,880.00 5,460.00 6,720.00 8,400.00 7,980.00 8,820.00 20,580.00 Ending FG@40% 104.00 128.00 160.00 152.00 168.00 152.00 Opening FG=End inv of prev mnth 104.00 128.00 160.00 152.00 168.00 104.00 Production in Units(Sales+cl-op) 384.00 284.00 352.00 392.00 396.00 1,028.00 Budgeted RM for prod'n@4 1,536.00 1,136.00 1,408.00 1,568.00 1,584.00 4,112.00 Ending @30% next month prod 340.80 422.40 470.40 475.20 475.20 Opening RM 340.80 422.40 470.40 340.80 Purchase of RM=Prod+end-op 1,217.60 1,456.00 1,572.80 4,246.40 RM Purchases cost@2 2,435.20 2,912.00 3,145.60 8,492.80 Budgeted Labour = Prod'n*hourpu*rateper hour 1,249.60 1,548.80 1,724.80 4,523.20 Budgetd Var O/H@.30 pu prod 85.20 105.60 117.60 308.40 Fixed O/H 625.00 625.00 625.00 1,875.00 Budgeted Manu O/H = Fixed+Var 710.20 730.60 742.60 2,183.40 Budgeted COGS = Matcost+Labour+Budgeted Manu 3,095.80 3,687.40 4,035.40 10,818.60 Fixed Selling and Admin 680.00 680.00 680.00 2,040.00 Variable Selling and Admin 104.00 128.00 160.00 392.00 Budgeted Selling and Admin = Var+Fixed 784.00 808.00 840.00 2,432.00