23. part 8,9,10

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017:

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017
Assets
Cash	$	65,000
Accounts receivable		434,850
Raw materials inventory		87,505
Finished goods inventory		374,640
Total current assets		961,995
Equipment, gross		624,000
Accumulated depreciation		(162,000	)
Equipment, net		462,000
Total assets	$	1,423,995
Liabilities and Equity
Accounts payable	$	199,405
Short-term notes payable		24,000
Total current liabilities		223,405
Long-term note payable		520,000
Total liabilities		743,405
Common stock		347,000
Retained earnings		333,590
Total stockholders equity		680,590
Total liabilities and equity	$	1,423,995

To prepare a master budget for April, May, and June of 2017, management gathers the following information:

Sales for March total 22,300 units. Forecasted sales in units are as follows: April, 22,300; May, 16,300; June, 22,700; and July, 22,300. Sales of 252,000 units are forecasted for the entire year. The products selling price is $26.00 per unit and its total product cost is $21.00 per unit.

Company policy calls for a given months ending raw materials inventory to equal 50% of the next months materials requirements. The March 31 raw materials inventory is 4,375 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,200 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials.

Company policy calls for a given months ending finished goods inventory to equal 80% of the next months expected unit sales. The March 31 finished goods inventory is 17,840 units, which complies with the policy.

Each finished unit requires 0.50 hours of direct labor at a rate of $15 per hour.

Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.90 per direct labor hour. Depreciation of $31,670 per month is treated as fixed factory overhead.

Sales representatives commissions are 10% of sales and are paid in the month of the sales. The sales managers monthly salary is $4,200.

Monthly general and administrative expenses include $24,000 administrative salaries and 0.9% monthly interest on the long-term note payable.

The company expects 25% of sales to be for cash and the remaining 75% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale).

All raw materials purchases are on credit, and no payables arise from any other transactions. One months raw materials purchases are fully paid in the next month.

The minimum ending cash balance for all months is $62,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance.

Dividends of $22,000 are to be declared and paid in May.

No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 40% in the quarter and paid in the third calendar quarter.

Equipment purchases of $142,000 are budgeted for the last day of June.

Required: Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the second calendar quarter, except as otherwise noted below. (Round calculations up to the nearest whole dollar, except for the amount of cash sales, which should be rounded down to the nearest whole dollar.): 8. Cash budget. 9. Budgeted income statement for the entire second quarter (not for each month separately). 10. Budgeted balance sheet.

Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)

Calculation of Cash receipts from customers:
		April	May	June
Total budgeted sales
Cash sales	25%
Sales on credit	75%
Total cash receipts from customers
		April	May	June
Current month's cash sales
Collections of receivables
ZIGBY MANUFACTURING
Cash Budget
April, May, and June 2017
		April	May	June
Beginning cash balance
Total cash available
Cash payments for:
Total cash payments		0	0	0
Preliminary cash balance
Ending cash balance
Loan balance
		April	May	June
Loan balance - Beginning of month
Additional loan (loan repayment)
Loan balance - End of month

Budgeted income statement for the entire second quarter (not for each month separately). (Round your final answers to the nearest whole dollar.)

ZIGBY MANUFACTURING
Budgeted Income Statement
For Three Months Ended June 30, 2017
Operating expenses
Total operating expenses		0
		0
		$0

Budgeted balance sheet. (Round your final answers to the nearest whole dollar.)

ZIGBY MANUFACTURING
Budgeted Balance Sheet
June 30, 2017
Assets
Total current assets		$0
Equipment, net		0
Total assets
Liabilities and Equity
Liabilities
Total current liabilities
Stockholders' Equity
Total Stockholders' Equity
Total Liabilities and Equity

Below are questions 5,6,7

previous info:

ZIGBY MANUFACTURING Direct Labor Budget May 16300 ri une Tota Budgeted Production (Units Labor Requirement per unit (Hours0.5 Total Labor Hoursneeded Labor Rate (per hour) Labor Dollars 22300 11150 167250 22700 11350 170250 8150 30650 122250 459750 ZIGBY MANUFACTURING Factory Overhead Budget May 8150 April 11150 Total Labour Hours needed Variable Factory Overhead Rate Budgeted Variable Overhea Budgeted Fixed Overhead Budgeted Total Overhead une 11350 3.9 44265 31670 75935 43485 31670 75155 31785 31670 63455 119535 95010 214545 ZIGBY MANUFACTURING Selling Expenses Budget April 579800 10% 57980 4200 62180 Total Budgeted Sales Sales Commission percent Sales Commissions Sales Salaries Total Selling Expenses May 423800 10% 42380 4200 46580 une 590200 10% 59020 4200 63220 159380 12600 171980 General and Administrative Expenses Budget Salaries Interest on Long-Term Note Total Expenses April 24000 4680 28680 May 24000 4680 28680 une 24000 4680 28680 Total 72000 14040 86040 ZIGBY MANUFACTURING Direct Labor Budget May 16300 ri une Tota Budgeted Production (Units Labor Requirement per unit (Hours0.5 Total Labor Hoursneeded Labor Rate (per hour) Labor Dollars 22300 11150 167250 22700 11350 170250 8150 30650 122250 459750 ZIGBY MANUFACTURING Factory Overhead Budget May 8150 April 11150 Total Labour Hours needed Variable Factory Overhead Rate Budgeted Variable Overhea Budgeted Fixed Overhead Budgeted Total Overhead une 11350 3.9 44265 31670 75935 43485 31670 75155 31785 31670 63455 119535 95010 214545 ZIGBY MANUFACTURING Selling Expenses Budget April 579800 10% 57980 4200 62180 Total Budgeted Sales Sales Commission percent Sales Commissions Sales Salaries Total Selling Expenses May 423800 10% 42380 4200 46580 une 590200 10% 59020 4200 63220 159380 12600 171980 General and Administrative Expenses Budget Salaries Interest on Long-Term Note Total Expenses April 24000 4680 28680 May 24000 4680 28680 une 24000 4680 28680 Total 72000 14040 86040