Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month Solution 1. Working 2. .

1. Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4
linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to
build, and the labor rate averages $12.00 per hour. Iguana has the following inventory policies:
Ending finished goods inventory should be 40 percent of next month
.
Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4
linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes
to build, and the labor rate averages $12.00 per hour. Iguana has the following inventory
policies:
Ending finished goods inventory should be 40 percent of next month
Solution
1.
Working
2.
Budgeted cash receipts for
Iguana
Month April May June July Aug. Total
Cash Sales 80% $6,600.00 $7,600.00 $9,600.00 $9,100.00 $10,100.00 $43,000.00
Receipt for Credit Sales $1,712.50 $1,775.00 $2,150.00 $2,337.50 $2,400.00 $1,262.50
Total Budgeted Receipt $8,312.50 $9,375.00 $11,750.00 $11,437.50 $12,500.00 $44,262.50