[The following information applies to the questions displayed below] Iguana, Inc., manufactures bamboo picture frames that sell for $25 each Esch frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $11 per hour. Iguana has the following Inventory policies: rmation 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: March Apr11 May June July August 200 280 330 430 405 455 Variable manufacturing overhead la incurred at a rate of $0.60 per unit produced. Annual fixed manufacturing overhead is estimated to be $7.200 ($600 per month) for expected production of 3.000 units for the year. Selling and administrative expenses are estimated at $700 per month plus $0.50 per unt sold. Iguans, Inc. had $11,100 cash on hand on April 1 Ofts 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 direct materials purchases. 80 percent is paid for during the month purchased and 20 percent is paid in the following month: Direct materials purchases for March 1 totaled $2.000. All other operating costs are paid during the month Incurred. Monthly fixed manufacturing overhead Includes $190 in depreciation. During April, Iguana plans to pay $3.300 for a plece of equipment. equired: Compute the budgeted cash receipts for iguane Compute the budgeted cash payments for iguane Prepare the cash Budget for iguane. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum cash siance.
[The following information applies to the questions displayed below] Iguana, Inc., manufactures bamboo picture frames that sell for $25 each Esch frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $11 per hour. Iguana has the following Inventory policies: rmation 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: March Apr11 May June July August 200 280 330 430 405 455 Variable manufacturing overhead la incurred at a rate of $0.60 per unit produced. Annual fixed manufacturing overhead is estimated to be $7.200 ($600 per month) for expected production of 3.000 units for the year. Selling and administrative expenses are estimated at $700 per month plus $0.50 per unt sold. Iguans, Inc. had $11,100 cash on hand on April 1 Ofts 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 direct materials purchases. 80 percent is paid for during the month purchased and 20 percent is paid in the following month: Direct materials purchases for March 1 totaled $2.000. All other operating costs are paid during the month Incurred. Monthly fixed manufacturing overhead Includes $190 in depreciation. During April, Iguana plans to pay $3.300 for a plece of equipment. equired: Compute the budgeted cash receipts for iguane Compute the budgeted cash payments for iguane Prepare the cash Budget for iguane. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum cash siance.
Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 26E: Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other...
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![[The following information applies to the questions displayed below]
Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo,
which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $11 per hour.
Iguana has the following Inventory policies:
information
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:
March
Apr 11
May
June
July
August
200
280
Variable manufacturing overhead la incurred at a rate of $0.60 per unit produced. Annual fixed manufacturing overhead is
estimated to be $7,200 ($600 per month) for expected production of 3,000 units for the year. Selling and administrative
expenses are estimated at $700 per month plus $0.50 per unit sold.
336
430
405
455
Iguans, Inc., had $11,100 cash on hand on April 1. Of ts sales, 80 percent is in cash. Of the credit sales, 50 percent is
collected during the month of the sale, and 50 percent la collected during the month following the sale.
Of direct materials purchases. 80 percent is paid for during the month purchased and 20 percent is paid in the following
month: Direct materials purchases for March 1 totaled $2,000. All other operating costs are paid during the month
Incurred. Monthly fixed manufacturing overhead Includes $190 in depreciation. During April, Iguana plans to pay $3.300
for a plece of equipment.
sredi
Required:
Compute the budgeted cash receipts for iguane
Compute the budgeted cash payments for Iguans.
. Prepare the cean Budget for iguans. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum
Biance.
Complete this question by entering your answers in the tabs below.
Requins 2
Pued 3
Compute the budgeted cash receipts for Iguana. [Do not round your
decimal places)
April
887240
May
June
armediate calculations. Round final answers s2
2nd Quarter Total
B72:40](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3654468f-b7c9-4163-bf3e-e65039b5f1cf%2Fe6bab05b-e8d5-4d1d-93dc-db8e6a95d3ea%2Fkztpn5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below]
Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo,
which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $11 per hour.
Iguana has the following Inventory policies:
information
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:
March
Apr 11
May
June
July
August
200
280
Variable manufacturing overhead la incurred at a rate of $0.60 per unit produced. Annual fixed manufacturing overhead is
estimated to be $7,200 ($600 per month) for expected production of 3,000 units for the year. Selling and administrative
expenses are estimated at $700 per month plus $0.50 per unit sold.
336
430
405
455
Iguans, Inc., had $11,100 cash on hand on April 1. Of ts sales, 80 percent is in cash. Of the credit sales, 50 percent is
collected during the month of the sale, and 50 percent la collected during the month following the sale.
Of direct materials purchases. 80 percent is paid for during the month purchased and 20 percent is paid in the following
month: Direct materials purchases for March 1 totaled $2,000. All other operating costs are paid during the month
Incurred. Monthly fixed manufacturing overhead Includes $190 in depreciation. During April, Iguana plans to pay $3.300
for a plece of equipment.
sredi
Required:
Compute the budgeted cash receipts for iguane
Compute the budgeted cash payments for Iguans.
. Prepare the cean Budget for iguans. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum
Biance.
Complete this question by entering your answers in the tabs below.
Requins 2
Pued 3
Compute the budgeted cash receipts for Iguana. [Do not round your
decimal places)
April
887240
May
June
armediate calculations. Round final answers s2
2nd Quarter Total
B72:40
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