Iguana inc manufactures bamboo picture frames that sell for

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Reference no: EM13569579

Iguana, Inc., manufactures bamboo picture frames that sell for $22 each. Each frame requires 3 linear feet of bamboo, which costs $1.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $10.00 per hour. Iguana has the following inventory policies:

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	270
April	270
May	320
June	400
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 $6,300 ($525 per month) for expected production of 4,152 units for the year. Selling and administrative expenses are estimated at $620 per month plus $0.60 per unit sold.

Required:

Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit and final answers to 2 decimal places.)

Reference no: EM13569579

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