Instructions i help ter 8 Budget Project The following information apples to the
ID: 2538092 • Letter: I
Question
Instructions i help ter 8 Budget Project The following information apples to the questions displayed below lguana, Inc, manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 lnear feet of bamboo, which costs $1.50 per foot Each frame takes approxdimately 30 minutes to build, and the labor rate averages $12 per hour. Iguana has the following inventory 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 Apri 360 420 570 545 595 Variable manufacturing overhead is incurred at a rate of $O.20 per unit produced. Annual foxed manufacturing overhead is estimated to be $7200 (5600 per month) for expected production of 4,000 units for the year. Seling and administrative expenses are estmated at $650 per month plus $0.50 per unit sold month of the sale, and S0 percent is collected duting the month following the sale materials purchases for March 1 totaled $2.400. All other operating costs are paid during the month incurred. Monthly foved manufacturing 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 Of raw materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Raw rhead includes S320 depreciation During Apr. Iguana plans to pay $4500 for a piece of equipment Required Information 2100 points Compute the following for Iguana, Inc., for the second quarter (April, May, and June). May June 2nd Quarter April Total 1. Budgeted Sales Revenue 2. Budgeted Production in Units Budgeted Cost of Raw Material Purchases 4 Budgeted Direct Labor Cost Budgeted Cost of Goods Sold 0.00 . Total Budgeted Selling and Adm. Expenses References Book &Resources;Explanation / Answer
Part 1 --- Budgeted Sales Revenue
Sales Budget
April
May
June
2nd Quarter Total
Budgeted Sales (Units)
420
470
570
1,460
Unit Selling Price
$20
$20
$20
$20
Budgeted Sales Revenue in dollars
$8,400
$9,400
$11,400
$29,200
Part 2 – Budgeted Production in Units
Production Budget
April
May
June
2nd Quarter Total
July
Next Month's Expected Unit Sales
470
570
545
595
Ratio of inventory to future sales
40%
40%
40%
40%
Budgeted Finished Goods Ending Inventory (units)
188
228
218
238
Add: Budgeted Sales (units)
420
470
570
545
Required units of available production
608
698
788
783
Less: Budgeted Beginning Inventory (Ending Finished Goods Inventory of last month)
168
188
228
218
Units to be produced
440
510
560
1,510
565
Part 3 – Budgeted Cost of Raw Materials Purchases
Raw Materials Budget
April
May
June
2nd Quarter Total
July
Production Budget (units)
440
510
560
565
Bamboo requirements per unit (in linear feet)
4
4
4
4
Total raw materials needed for production (in linear feet)
1760
2040
2240
2260
Add: Raw materials ending inventory (30% of the next months materials requirements)
612
672
678
Total materials requirements (in feet)
2372
2712
2918
Less: Raw Materials Beginning Inventory (Ending Inventory of Previous Month)
528
612
672
Total Raw materials to be purchased (in linear feet)
1844
2100
2246
6190
Raw material cost per foot
$1.50
$1.50
$1.50
$1.50
Budgeted Cost of Raw material purchases
$2,766
$3,150
$3,369
$9,285
Part 4 – Budgeted Direct Labor Cost
Direct Labor Budget
April
May
June
2nd Quarter Total
Units to be produced
440
510
560
Required Direct Labor Hour per unit
0.50
0.50
0.50
Total Direct Labor Hours Required
220
255
280
Direct Labor Cost per hour
$12
$12
$12
Budgeted Direct Labor Cost
$2,640
$3,060
$3,360
$9,060
You need to fill the above detail in the given answer format as follows:
April
May
June
2nd Quarter Total
1. Budgeted Sales Revenue
$8,400
$9,400
$11,400
$29,200
2. Budgeted Production in Units
440
510
560
1,510
3. Budgeted Cost of Raw Materials Purchases
$2,766
$3,150
$3,369
$9,285
4. Budgeted Direct Labor Cost
$2,640
$3,060
$3,360
$9,060
Please ask separate question for remaining parts.
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Sales Budget
April
May
June
2nd Quarter Total
Budgeted Sales (Units)
420
470
570
1,460
Unit Selling Price
$20
$20
$20
$20
Budgeted Sales Revenue in dollars
$8,400
$9,400
$11,400
$29,200