Required information[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 $2.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $14 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:MarchAprilMayJuneJulyAugustVariable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead isestimated to be $10,800 ($900 per month) for expected production of 4,000 units for the year. Selling and administrativeexpenses are estimated at $950 per month plus 50.60 per unit sold.Iguana, Inc., had $11,900 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent iscollected during the month of the sale, and 50 percent is collected during the month following the sale.350480450550525575Of 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 $4,000. All other operating costs are paid during the monthincurred. Monthly fixed manufacturing overhead includes $300 in depreciation. During April, Iguana plans to pay $2,000Required:1. Compute the budgeted cash receipts for Iguana.2. Compute the budgeted cash payments for Iguana.3. Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $11,000 minimum cashbalance.Complete this question by entering your answers in the tabs below.Required 1 Required 2Required 3Compute the budgeted cash receipts for Iguana. (Do not round your intermediate calculations. Round final answers to 2decimal places.)Budgeted Cash Receipts.AprilBudgeted Cash PaymentsMayRequired 1Required:1. Compute the budgeted cash receipts for iguana.2. Compute the budgeted cash payments for Iguana.3. Prepare the cash budget for iguana. Assume the company can borrow in increments of $1,000 to maintain a $11,000 minimum cashbalance.Complete this question by entering your answers in the tabs below.AprilBeginning Cash BalancePlus: Budgeted Cash ReceiptsLess: Budgeted Cash PaymentsPreliminary Cash BalanceCash Borrowad/RepaidEnding Cash BalanceRequired 1 Required 2 Required 3Compute the budgeted cash payments for Iguana. (Do not round your intermediate calculations. Round final answers to 2decimal places.)June 2nd Quarter TotalMayRequired 1Required 2 >AprilRequired:1. Compute the budgeted cash receipts for Iguana.2. Compute the budgeted cash payments for Iguana.3. Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $11,000 minimum cashbalance.June 2nd Quarter TotalComplete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $11,000minimum cash balance. (Leave no cell blank enter "0" wherever required. Round your answers to 2 decimal places.)May2nd Quarter TotalJune

Answered: Image /qna-images/answer/04b88f49-6055-416d-9536-5dae15355237.jpg

Required information [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 $2.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $14 per hour. Iguana has the following inventory polices: .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 April May June July August 350 400 450 550 525 575 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $10,800 ($900 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $950 per month plus 50.60 per unit sold. Iguana, Inc., had $11,900 cash on hand on April 1. Of its 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 $4,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $300 in depreciation. During April, Iguana plans to pay $2,000 Required: 1. Compute the budgeted cash receipts for Iguana. 2. Compute the budgeted cash payments for Iguana. 3. Prepare the cash budget for Iguane. Assume the company can borrow in increments of $1,000 to maintain a $11,000 minimum cash balance.

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...