Iguana, Inc, 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, 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: March April May June July August 370 440 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,500 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. 490 590 565 615 Iguana, Inc., had $11,200 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credits sales, 50 percent is collected during the month of the sole, and 50 percent is collected during the month following the sale. March April May June 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 $4.500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $340 in depreciation. During April, Iguana plans to pay $3.500 for a piece of equipment July August 370 440 490 590 565 615 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,500 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. Iguana, Inc., had $11,200 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 $4,500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $340 in depreciation. During April, Iguana plans to pay $3,500 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 $10,000 minimum cash balance 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: March April May June July August 370 440 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,500 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. 490 590 565 615 Iguana, Inc., had $11,200 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credits sales, 50 percent is collected during the month of the sole, and 50 percent is collected during the month following the sale. March April May June 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 $4.500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $340 in depreciation. During April, Iguana plans to pay $3.500 for a piece of equipment July August 370 440 490 590 565 615 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,500 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. Iguana, Inc., had $11,200 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 $4,500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $340 in depreciation. During April, Iguana plans to pay $3,500 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 $10,000 minimum cash balance
Expert Answer:
Answer rating: 100% (QA)
To compute the budgeted cash receipts for Iguana we need to consider the sales and collection patterns given in the information provided 1 Compute the budgeted cash receipts for Iguana March Cash sale... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Analyze Home Depot its operations and its associated industry and evaluate these areas for the development of a business plan for growth to increase revenues by 10 over the next five years with...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Pfizer was established in 1849 in Brooklyn, New York by cousins Charles Pfizer and Charles Erhart with a loan of $2,500 from Pfizers father.2 Today, 167 years later, Pfizer Inc. has international...
-
You have learned a great deal about the Internet Protocol (IP). IP is a set of rules for how data is sent across networks and arrive at the intended destination. An IP address is a numeric identifier...
-
A container equipped with a resistance heater and a mixer is initially filled with 3.6 kg of saturated water vapor at 120C. Now the heater and the mixer are turned on; the steam is compressed, and...
-
What constitutes an insurable risk? List several insurable political risks.
-
How would the primordial helium content of the universe have been affected if the present cosmic background radiation temperature was \(27 \mathrm{~K}\) instead of \(2.7 \mathrm{~K}\) ? What about...
-
Perine Company has 2,000 pounds of raw materials in its December 31, 2013, ending inventory . Required production for January and February of 2014 are 4,000 and 5,000 units, respectively. Two pounds...
-
Sketch the following set (shade the region inside the set): {x R | ||Ax b|| 1}, where b = H and A = [ ]
-
Q1 JE # 1 JE # 2 JE # 3 JE # 4 Business Insurance Annual Expense Coverage Period Here is the billing schedule of the insurance carrier. Invoice Schedule Invoice Amount Installment 1 Installment 2...
-
Which of these loops does not produces the following output: 1-3-5-7-9-11-13-15-17-19-21- * for(int i = 0; i < 10; i++) System.out.print(2 * i + 1 + "-"); %3D for(int i = 0; i
-
Genetically modified organisms (GMOs) include food products in which genetics have been used to extend product shelf life, deter pests, and other product innovations. Much of the food consumed in the...
-
Some firms manage disruptive strategy threats by investing in the firms that bring them to market, so that if the threat turns out to be wildly successful it can still benefit from it financially. Is...
-
Companies are increasingly looking to India for outsourced IT and knowledge work. To attract and accommodate an even greater influx of foreign firms, the government has given a contract to Reliance,...
-
Using the value curve model illustrated in How Would You Do That? 2, map the strategic groups in the soft drink industry. What groups are there other than the two dominant companies? How do they...
-
Environmental issues, including climate change, are increasingly discussed in the executive suite as it relates to strategy formulation and implementation. How green should a company be that is...
-
At the beginning of the current year, Paolo Co reported the fair value of plan assets at P7,000,000 and projected benefit obligation at P8,500,000. During the year the entity determined that the...
-
Trade credit from suppliers is a very costly source of funds when discounts are lost. Explain why many firms rely on this source of funds to finance their temporary working capital.
-
Billiardco, a supplier of snooker equipment, agreed to acquire the business of a rival ï¬rm, Qtech Ltd., taking over all assets and liabilities as at June 1, 2013. The price agreed on was...
-
On October 2, 2013, a Canadian company contracts with a U.S. winery for delivery from the winery of 1,000 cases of wine at a price of U.S. $100,000. The wine is to be delivered February 1, 2014, and...
-
According to the CICA PSA Handbook, "One important indicator of a government's financial position is its net debt, calculated as the difference between its liabilities and financial assets. The...
-
What is the role of the origin of transfer during conjugation involving F+ and Hfr strains? What is the significance of the direction of transfer in Hfr conjugation?
-
What is the role of sex pili during conjugation?
-
Think about the structure and transmission of F factors, and discuss how you think F factors may have originated.
Study smarter with the SolutionInn App