Iguana. Inc., manufactures bamboo picture frames that sell for $30 each. Each fr
ID: 2775173 • Letter: I
Question
Iguana. Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 5 linear feet of bamboo, which costs $2.00 per foot Each frame takes approximately 30 minutes to build, and the labor rate averages $10 00 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 Variable manufacturing overhead is incurred at a rate of $0 50 per unit produced Annual fixed manufacturing overhead is estimated to be $6 500 ($650 per month) for expected production of 5.000 units for the year Selling and administrative expenses are estimated at $660 per month plus $0 80 per unit sold. Iguana Inc. had $10 900 cash on hand on April 1 Of its sales 80 percent is in cash Of the credit sales. 50% is collected during the month of the sale and 50% 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 $2.100 All other operating costs are paid during the month incurred Monthly fixed manufacturing overhead includes $160 in depreciation During April Iguana plans to pay $3 100 for a piece of equipment Compute the budgeted cash receipts for Iguana (Do not round your intermediate calculations. Round final answers to 2 decimal places.)Explanation / Answer
Answer
Working
April May June 2nd Quarter - Total Budgeted Cash Receipts 8,297.50 9,150.00 12,000.00 29,447.50