Of direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the followingmonth. Direct materials purchases for March 1 totaled $2,000. All other operating costs are paid during the monthincurred. Monthly fixed manufacturing overhead includes $150 in depreciation. During April, Iguana plans to pay $3,000for a piece of equipment.Required:Compute the following for Iguana, Incorporated, for the second quarter (April, May, and June).Note: Do not round your intermediate calculations.41. Budgeted Sales Revenue2. Budgeted Production in Units3. Budgeted Cost of Direct Material Purchases4. Budgeted Direct Labor Cost5. Budgeted Manufacturing Overhead6. Budgeted Cost of Goods Sold7. Total Budgeted Selling and Administrative ExpenseAprilMayJune2nd QuarterTotal Required information[The following information applies to the questions displayed below.]Iguana, Incorporated, manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet ofbamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages$12.00 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:TEMarchAprilMayJuneJulyAugust275250300400375425Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead isestimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrativeexpenses are estimated at $650 per month plus $0.60 per unit sold.Iguana, Incorporated, had $10,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50percent is collected during the month of the sale, and 50 percent is collected during the month following the sale.

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Compute the following for Iguana, Incorporated, for the second quarter (April, May, and June). Note: Do not round your intermediate calculations. 4 1. Budgeted Sales Revenue 2. Budgeted Production in Units 3. Budgeted Cost of Direct Material Purchases April May June 2nd Quarter Total

Compute the following for Iguana, Incorporated, for the second quarter (April, May, and June). Note: Do not round your intermediate calculations. 4 1. Budgeted Sales Revenue 2. Budgeted Production in Units 3. Budgeted Cost of Direct Material Purchases April May June 2nd Quarter Total

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 6P: RDI Products Co. manufactures a variety of products made of plastic and aluminum components. During...

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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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Copley Paper Supply expects to have the sales and expenses shown for May, June,and July. The company expects to receive 70% of the sales in the month of the sale,25% thefollowing month, and 5% to be uncollectible. The company’s policy to paymanufacturing cost includes 65% in the month incurred and 35% the followingmonth. All other costs are paid in the month incurred. In addition, the company mustpay an income tax payment in July, which the company estimates will be 10% of totalsales for the quarter. The company will also receive interest revenue of $1,200 inJune. Prepare the cash budget for the three months if the cash balance as of May 1, 2015,totaled $102,000. The company requires a $100,000 minimum cash balance.
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Rooney Corporation estimated its overhead costs would be $23,200 per month except for January when it pays the $165,960 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $189,160 ($165,960 + $23,200). The company expected to use 7,600 direct labor hours per month except during July, August, and September when the company expected 9,400 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company’s actual direct labor hours were the same as the estimated hours. The company made 3,800 units of product in each month except July, August, and September, in which it produced 4,700 units each month. Direct labor costs were $23.10 per unit, and direct materials costs were $10.20 per unit. Required Calculate a predetermined overhead rate based on direct labor hours. Determine the total allocated overhead cost for January, March, and August. Determine the…
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