Iguana, Incorporated, manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Iguana, Incorporated, 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: March April May 350 400 450 550 June July August 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 $0.60 per unit sold. Iguana, Incorporated, 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 for a piece of equipment. Required: 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 cash balance. No interest is charged if the loan is paid off by the end of the next quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $11,000 minimum cash balance. No interest is charged if the loan is paid off by the end of the next quarter. Note: Leave no cell blank enter "0" wherever required. Round your answers to 2 decimal places. Beginning Cash Balance Plus: Budgeted Cash Receipts Less: Budgeted Cash Payments Preliminary Cash Balance Cash Borrowed/Repaid Ending Cash Balance April May June 2nd Quarter Total 0.00 0.00 Iguana, Incorporated, 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: March April May 350 400 450 550 June July August 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 $0.60 per unit sold. Iguana, Incorporated, 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 for a piece of equipment. Required: 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 cash balance. No interest is charged if the loan is paid off by the end of the next quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $11,000 minimum cash balance. No interest is charged if the loan is paid off by the end of the next quarter. Note: Leave no cell blank enter "0" wherever required. Round your answers to 2 decimal places. Beginning Cash Balance Plus: Budgeted Cash Receipts Less: Budgeted Cash Payments Preliminary Cash Balance Cash Borrowed/Repaid Ending Cash Balance April May June 2nd Quarter Total 0.00 0.00
Expert Answer:
Answer rating: 100% (QA)
Iguana Incorporated Cash Budget 1 Budgeted Cash Receipts Month Cash Sales 80 of Sales Credit Sales C... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
Students also viewed these accounting questions
-
Partnership entries and statement of partnership equity The capital accounts of Hassan Khan and Dmitri Palovich have balances of $75,000 and $54,000, respectively, on January 1, 2014, the beginning...
-
Blackmon Company provides locator services to the city transportation departments. Blackmons service involves installing a dedicated hardware transmitter in each city bus. This transmitter provides...
-
Jason Chan operates a takeout pizza business called A Slice of Life. During the month of November, the following things occurred: he paid $7,692 for pizza ingredients, $1,200 for rent, $220 for the...
-
Three forces are applied to a bracket as shown. The directions of the two 150-N forces may vary, but the angle between these forces is always 50. Determine the range of values of for which the...
-
Give an account of sales situations where direct personal selling is likely to be more effective than other direct marketing techniques. Justify your answer by referring to specific practical...
-
On December 1, 2014, the Iaia Wholesale Co. is attempting to project cash receipts and disbursements through January 31, 2015. On this latter date, a note will be payable in the amount of $ 107,000....
-
Evaluate the following definite integral. 1 x (4x 1)4 dz 0 1/3 X
-
What would be the result of the following: const isTaskCompleted = false; if (isTaskCompleted) { console.log('Task completed'); } else { console.log('Task incomplete'); } What would be the result of...
-
Some service marketers maintain that service marketing is fundamentally different from product marketing and relies on different skills. Some traditional product marketers disagree, saying "good...
-
The resistors in the circuit have the resistance values shown. What is the equivalent resistance seen by the voltage source (in )?
-
1. Stacy Tanner, capital, June 30: $483,300 Finders Investigative Services is an investigative services f and operated by Stacy Tanner. On June 30, 20Y3, the end of the fiscal year, the accountant...
-
1. You become aware that an attorney at your firm is using their IOLTA trust account to pay for some personal expenses. What should you do? Using the ethics rules provided by NFPA, NALA, or the Ohio...
-
Consider the system of charges shown below .All four charges shown have the same magnitude. What is the electric field vector at point B ? + + +
-
Assume that you are a management consultant hired to analyze the company and to give an honest and thorough assessment of the companys environment and competitive situation. Your analysis is to be...
-
In Problem use absolute value on a graphing calculator to find the area between the curve and the x axis over the given interval. Find answers to two decimal places. y = x 3 ln x; 0.1 x 3.1
-
Let \(P(A \cap \bar{B})=0.3\) and \(P(\bar{B})=0.6\). Determine \(P(A \cup B)\).
-
Is it possible that for two events \(A\) and \(B\) with \(P(A)=0.4\) and \(P(B)=0.2\) the relation \(P(A \cap B)=0.3\) is true?
-
Check whether for 3 arbitrary random events \(A, B\), and \(C\) the following constellations of probabilities can be true: (1) \(P(A)=0.6, P(A \cap B)=0.2\), and \(P(A \cap \bar{B})=0.5\), (2)...
Study smarter with the SolutionInn App