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Question- Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $1.25 per foot. Each frame takes approximately 24 minutes to build, and the labor rate averages $10.00 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 50 percent of next month's sales. Ending raw materials inventory should be 40 percent of next month's production. Expected unit sales (frames) for the upcoming months follow: March 290 April 280 May 290 June 420 July 390 August 430 Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $6,600 ($550 per month) for expected production of 4,180 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.70 per unit sold.
Required - Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit and final answers to 2 decimal places.)
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