Iguana, Inc., manufactures bamboo picture frames that sell for $22 each. Each frame requires 3 linear feet of bamboo, which costs $1.50 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 |
270 |
| April |
270 |
| May |
320 |
| June |
400 |
| July |
390 |
| August |
430 |
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Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $6,300 ($525 per month) for expected production of 4,152 units for the year. Selling and administrative expenses are estimated at $620 per month plus $0.60 per unit sold.
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| Required: |
| Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit and final answers to 2 decimal places.) |