Bamboo You, Inc. This company manufactures bamboo picture frames that sell for $23 each. Each frame requires 4 linear feet of bamboo, which costs $1.50 per foot. Each frame takes approximately 18 minutes to build, and the labor rate averages $9.00 per hour.
| Bamboo You has the following inventory policies: |
| Ending finished goods inventory should be 30 percent of the next month's sales. |
| Ending raw materials inventory should be 30 percent of the next month's production. |
| Expected unit sales for the upcoming months follow: |
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| March |
280 |
| April |
260 |
| May |
310 |
| June |
390 |
| July |
370 |
| August |
450 |
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Variable manufacturing overhead is incurred at a rate of $.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for an expected production of 3,972 units for the year. Selling and administrative expenses are estimated at $670 per month plus $.60 per unit sold.
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| Requirement 1: |
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Calculate the budgeted sales revenue for Bamboo You, Inc., for the second quarter (April, May, and June). Include each month as well as the quarter 2. (
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| Requirement 2: |
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Calculate the production budget for Bamboo You, Inc., for the second quarter (April, May, and June). Include each month as well as the quarter 2.
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| Requirement 3: |
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Calculate the Raw materials purchases budget for Bamboo You, Inc., for the second quarter . Include each month as well as the quarter 2.
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