. Supplies Inventory connect GROUP A PROBLEMS 8-1 Preparing Operating Budgets Operating Budgets guana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 inear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to ild, and the labor rate averages S12.00 per hour. Iguana has the following inventory policies: bu Ending finished goods inventory should be 40 percent of next month's sales. Ending raw 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 275 250 300 400 375 425 Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7.200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.60 per unit sold. Required: Prepare the following for Iguana, Inc.,,for the second quarter (April, May, and June). Include each month as well as the quarter 2 total for each budget. 1. Sales budget. 2. Production budget. 3. Raw materials purchases budget. 4. Direct labor budget. etary Planning 5. Manufacturing overhead budget. 6. Budgeted cost of goods sold. 7. Selling and administrative expenses budget. PA8-2 Preparing Budgeted Income Stateme Refer to the information in PA8-1 Required: Prepare Iguana's budgeted income statement for qu PA8-3 Preparing Cash Budget Refer to the information in PA8-1. Iguana, Inc., h