Iguana, Incorporated, manufactures bamboo picture frames that sell for $30 each. Each frame requires 4...
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Iguana, Incorporated, 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 $15 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next months sales. Ending direct materials inventory should be 30 percent of next months production. Expected unit sales (frames) for the upcoming months follow: March 335 April 370 May 420 June 520 July 495 August 545
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