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Required Information [The following Information applies to the questions displayed below.] Iguana, Incorporated, manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 IInear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to bulld, and the labor rate averages $13 per hour. Iguana has the following Inventory policles: - 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: Varlable manufacturing overhead is Incurred at a rate of $0.50 per unit produced. Annual fixed manufacturing overhead Is estimated to be $4,800 ( $400 per month) for expected production of 4,800 units for the year. Selling and administratlve expenses are estimated at $500 per month plus $0.50 per unit sold. Iguana, Incorporated, had $10,500 cash on hand on Aprll 1. Of Its sales, 80 percent Is In cash. Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale. Of direct materlals purchases, 80 percent is pald for during the month purchased and 20 percent is pald In the following month. Direct materlals purchases for March 1 totaled $2,200. All other operating costs are pald during the month Incurred. Monthly fixed manufacturing overhead Includes $220 in depreclation. Durlng Aprll, Iguana plans to pay $3,700 for a plece of equipment. Required: Compute the following for Iguana, Incorporated, for the second quarter (Aprll, May, and June)

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