Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 5 linear feet of bamboo, which costs $2.00 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: |
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| March |
395 |
| April |
370 |
| May |
420 |
| June |
520 |
| July |
490 |
| August |
545 |
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| Variable manufacturing overhead is incurred at a rate of $0.50 per unit produced. Annual fixed manufacturing overhead is estimated to be $6,000 ($750 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $770 per month plus $0.80 per unit sold. |
| Iguana, Inc., had $12,000 cash on hand on April 1… Of its sales, 80 percent is in cash. Of the credit sales, 50% is collected during the month of the sale, and 50% is collected during the month following the sale. |
| Of raw materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Raw materials purchases for March 1 totaled $3,200. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $270 in depreciation. During April, Iguana plans to pay $4,200 for a piece of equipment.
I need Budgeted Cash Receipts, Budgeted Cash Payments, and I need to prepare a Cash Budget (all 3 for the months of April, May, June)
There are plenty of this same question on here but none of the answers show to how to mathimatically find each indidual answer. They simply give the answer so I have no idea how to find the answer to mine because it has different numbers |
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