Budgeted cash payments. Would I begin with Cost of Direct materiasl purchase of April-3,010, May-3,650,June-4,015, 2nd Quarter -10,675?
Extracted text: Iguana, Inc., manufactures bamboo picture frames that sell for $30 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 $12 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month's sales. Ending direct materlals inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow: March 280 Apri1 May June 260 310 410 July August 385 435 Variable manufacturing overhead is incurred at a rate of S0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,800 ($650 per month) for expected production of 3.000 units for the year. Selling and administrative expenses are estimated at $700 per month plus S0,50 per unit sold. Iguana, Inc., had $10,900 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent ts collected during the month of the sale, and 50 percent is collected during the month following the sele, Of direct materlals purchases, 80 percent is pald for during the month purchased and 20 percent is pald in the following month. Direct materials purchases for March 1 totaled $2500. Al other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $160 In depreciation. During April, Iguana plans to pay $3.100 for a piece of equipment.
Extracted text: a plece 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 balance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the budgeted cash payments for Iguana. (Do not round your intermediate calculations. Round final answers decimal places.) April May June 2nd Quarter Total Budgeted Cash Payments 0.00 < required="" 1="" required="" 3="">