The management of Zigby Manufacturing prepared the following balance sheet for March 31. ZIGBY MANUFACTURING Balance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The management of Zigby Manufacturing prepared the following balance sheet for March 31. ZIGBY MANUFACTURING Balance Sheet March 31 Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Less: Accumulated depreciation Total assets Assets 1,080,000 270,000 Required: $ 72,000 Liabilities 619,920 177,300 585,972 810,000 Liabilities and Equity Accounts payable 1. Sales budget. 2. Production budget. 3. Direct materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. Loan payable Long-term note payable Equity $ Total liabilities and 2,265,192 equity Common stock Retained earnings 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials.. 10. Cash budget. 361,800 12,000 900,000 603,000 388,392 To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 36,900 units. Budgeted sales in units follow: April, 36,900; May, 35,100; June, 36,000; and July, 36,900. The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit. b. Raw materials inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materials inventory is 8,865 pounds. The budgeted June 30 ending raw materials inventory is 7,200 pounds. Each finished unit requires 0.50 pound of direct materials. 11. Budgeted income statement for entire second quarter (not monthly). 12. Budgeted balance sheet at June 30. 1,273,800 c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 finished goods inventory is 29,520 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined variable overhead rate is $2.70 per direct labor hour. Depreciation of $36,000 per month is the only fixed factory overhead item. f. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $5,400. g. Monthly general and administrative expenses include $21,600 for administrative salaries and 0.9% monthly interest on the long-term note payable. h. The company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of sale). i. All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase). j. The minimum ending cash balance for all months is $72,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 1% at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $18,000 are budgeted to be declared and paid in May. 1. No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter. m. Equipment purchases of $180,000 are budgeted for the last day of June. Complete this question by entering your answers in the tabs below. 991,392 $ $ 2,265,192 The management of Zigby Manufacturing prepared the following balance sheet for March 31. ZIGBY MANUFACTURING Balance Sheet March 31 Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Less: Accumulated depreciation Total assets Assets 1,080,000 270,000 Required: $ 72,000 Liabilities 619,920 177,300 585,972 810,000 Liabilities and Equity Accounts payable 1. Sales budget. 2. Production budget. 3. Direct materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. Loan payable Long-term note payable Equity $ Total liabilities and 2,265,192 equity Common stock Retained earnings 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials.. 10. Cash budget. 361,800 12,000 900,000 603,000 388,392 To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 36,900 units. Budgeted sales in units follow: April, 36,900; May, 35,100; June, 36,000; and July, 36,900. The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit. b. Raw materials inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materials inventory is 8,865 pounds. The budgeted June 30 ending raw materials inventory is 7,200 pounds. Each finished unit requires 0.50 pound of direct materials. 11. Budgeted income statement for entire second quarter (not monthly). 12. Budgeted balance sheet at June 30. 1,273,800 c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 finished goods inventory is 29,520 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined variable overhead rate is $2.70 per direct labor hour. Depreciation of $36,000 per month is the only fixed factory overhead item. f. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $5,400. g. Monthly general and administrative expenses include $21,600 for administrative salaries and 0.9% monthly interest on the long-term note payable. h. The company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of sale). i. All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase). j. The minimum ending cash balance for all months is $72,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 1% at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $18,000 are budgeted to be declared and paid in May. 1. No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter. m. Equipment purchases of $180,000 are budgeted for the last day of June. Complete this question by entering your answers in the tabs below. 991,392 $ $ 2,265,192
Expert Answer:
Answer rating: 100% (QA)
Certainly lets solve this stepbystep 1 Sales Budget Month Units Sold Selling Price Sales Revenue April 36900 2400 885600 May 35100 2400 842400 June 36000 2400 864000 Total 108000 2592000 2 Production ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A child with a weight of 120 N swings on a playground swing attached to 2.20 m long chains. What is the gravitational potential energy (in J) of the child-earth system relative to the child's lowest...
-
Suppose that the following declarations are in effect: int a [] = {5, 15, 34, 54, 14, 2, 52, 72}; int *p = &a [1], *q = &a [5] ; (a) What is the value of * (p+3) ? (b) What is the value of * (q-3)?...
-
The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 2015: To prepare a master budget for April, May, and June of 2015, management gathers the following...
-
Seeking for information of a specific organization then answer following questions: (1) Give a brief introduction of the chosen organization. (2) Explain the type of the chosen organization. What are...
-
The May 2018 revenue and cost information for McDonald Outfitters, Inc. follows: Sales Revenue (at standard) ...................................... $ 610,000 Cost of Goods Sold (at standard)...
-
Cooper National is incorporated in Alabama. It generated a $5 million profit on its overseas operations this year. Cooper paid the following to various other countries. $1 million in income taxes. ...
-
The local book store bought more calendars than it could sell. It was nearly June and 200 calendars remained in stock. The store paid $4.50 each for the calendars and normally sold them for $8.95....
-
Robben Company is considering investing in an annuity contract that will return $40,000 annually at the end of each year for 15 years. What amount should Robben Company pay for this investment if it...
-
Exercise 8-11A (Algo) Issuing stock for cash LO 8-4 Tom Yuppy, a wealthy investor, paid $33,000 for 1,100 shares of $10 par common stock issued to him by Leuig Corp. A month later, Leuig Corp. issued...
-
Huimin Ltd. had the following account balances at December 2021 1 3 25 29 32 30 33 Huimin Ltd. had the following account balances at Decemb Account Name Dividends Prepaid expenses Interest...
-
In the EOQ model for a product, suppose the weekly demand increases by 50% of the previous value from this week onwards, and is expected to remain at this level in the future; everything else remains...
-
da If a + y = 26, and = 4 when x=5 and y = 1, what is dt dy dt when x = 5 and y = 1? dt
-
Assume the total monthly operating costs of a McDonald's restaurant are: $40,000+$0.75X Where X = Number of salad order Required Determine the average cost per salad at each of the following monthly...
-
The yields of $1000 dollar par value zero-coupon government bonds (ignore liquidity premiums) are tabled below: Years to Maturity Yield to 1 Maturity 4.00% 2 5.30% 3 6.1% 4 6.5% 5 7.85%
-
1. In a 500-750 word paper, choose two distinctly different cultures to compare with our "American" culture (which is of course mixed up anyway). 2. Next, create a chart that illustrates the...
-
Determine how much of the original amount borrowed remains unpaid. Subtract the amount of the principal that has been repaid (from step 3) from the original amount borrowed: (Note: Round your answer...
-
Adjust the Cash Balance We obtain the following 2020 forecastsof selected financial statement line items for Journey Company. $millions 2019 Actual 2020 Est. Net Sales $559,758 $584,947Marketable s 2...
-
6 (a) Briefly develop a mathematical model of the behaviour of a copper-twisted pair cable (b) Derive the magnetic energy from: w given that: K + w, where the - - k symbols have their usual meaning...
-
Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the payback...
-
Refer to the information in Exercise 4-1. Compute the activity rate for each activity, assuming the company uses activity-based costing. In Exercise 4-1 Xie Company identified the following...
-
Google has many types of costs. What is an out-of-pocket cost? What is an opportunity cost? Are opportunity costs recorded in the accounting records?
-
(a) Fixed costs are really variable. The more you produce, the less they become. Do you agree? Explain. (b) In the long term, all costs are variable. Explain with reference to the relevant range.
-
How can you identify semi-variable costs and separate them into the fixed and variable elements?
-
What is a semi-variable cost?
Study smarter with the SolutionInn App