#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 $ 80,000 Accounts receivable 364,800 Raw materials inventory 96,880 Finished goods inventory 364,880 Total current assets 984,800 Equipment, gross 610,800 Accumulated depreciation (155,880) Equipment, net 455,800 Total assets $1,359,880 Liabilities and Equity Accounts payable $ 195,500 Short-term notes payable 17,000 Total current liabilities 212,500 Long-term note payable 510,880 Total liabilities 722,580 Common stock 340, 880 Retained earnings 297,380 Total stockholders' equity 637. 380 Total liabilities and equity To prepare a master budget for April May and no 2017.magm a thers the following information Sales for March total 18.000 Forecasted sales in units are as follows: Apr, 18.00: May, 17,000: June 20.700: and July 18.000 of 247.000 unite ng is SMD and to productos 524 20 per unit Company policy for a momenting was vertory to equal of the next month's materials og The March 1 w Which comes with the policy. The expected in onding raw vertorys 4.700 Ro c o 20 per c h ed d rs for the t o . e Company a n d went on the secteur The 100 which comes with the policy d. Each wished to b e of Gre a t role of 522 per hour Overhead is located based on director hours. The pro d atie over is 53.40 per director hou. Depreciation of 2750 per mostra ted Sales representa com o andare in the more of the The managersm a lar 3.700 M eer and adv entude 10.000 a v res and more on the longo The company po 20 of to be for cash and the remaining on cre a re the morn ing the one are the month of Alwara purchases are credit and p r om any other transaccions. One more purchase d the more Themmang cance for a month $55.000 , e company tomo n ga hon o re m Short an or payment of the mood for any rea ding chance th e grehom Dividends of $17.000 arte de padiny Locatore to be made the second and come wi t h the m. Eument purchase of $137.000 rebudited for the last day of June He Prepare the owing budgets and other and a requiredAll budgets and other financial should be do n a r 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 1. Sales budget 2. Production budget 3. Raw material budget 4. Direct labor budget 5. Factory overhead budget 6. Seing expense budget 7. General and administrative expense budget & Cash budget 9. Budgeted income statement for the entire second quarter not for each month separately 10. Budgeted balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Requ Sales budget. (Round Budgeted unit price to 2 decimal places.) ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 Budgeted Budgeted Unit Sales Unit Price April 2017 18,000 $ 30.00 May 2017 17,000 30.00 June 2017 20,700 30.00 Totals for the second quarter 55,700 Budgeted Sales Dollars $ 540,000 510,000 621.000 $ 1,671,000 Required 1 Requed 2 Required 3 Required 4 Required 5 Required 6 Required 7 Requ Production budget. June Total 20,000 Next month's budgeted sales (units) Ratio of inventory to future sales Budgeted ending inventory (units) Budgeted units sales for month Required units of available production Beginning inventory (units) Units to be produced ZIGBY MANUFACTURING Production Budget April, May, and June 2017 April May 19,000 19,500 80% 80% 13,600 15,600 18,000 170,000 31,600 185,600 14,400 13,600 17,200 19,960 80% 16,000 20,700 36,700 16,560 18,540 55,700 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Requ Raw materials budget. (Round per unit values to 2 decimal places.) June Total 18,540 Production budget (units) Materials requirements per unit Materials needed for production Budgeted ending inventory Total materials requirements (units) Beginning inventory Materials to be purchased Material price per unit Budgeted raw material purchases ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 April May 17,200 19,960 0.50 0.50 8,600 9.980 4,990 4,635 13,590 14,615 (4.300) (4.990) 9,290 9,625 20 $ 20 $ 185,800 $ 192,500 0.50 9,270 4,700 13,970 (4,635) 9,335 20 186,700 $ $ 28,250 $ 20 $ 565,000 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Req Direct labor budget. (Round per unit values to 2 decimal places.) June Total Budgeted production (units) Labor requirements per unit (hours) Total labor hours needed Direct labor rate (per hour) Budgeted direct labor cost ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May 17,200 19,960 0.50 0.50 9,980 $ 225$ 22 $ 189,200 $ 219,560 18,540 0.50 9,270 22 203,940 S $ $ 27,850 22 612,700 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required, 4 Required 5 Required 6 Required 7 Require Factory overhead budget. (Round per unit values to 2 decimal places.) June Total Labor hours needed Variable factory overhead rate Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 April May 8,600 9,980 3.40 $ 3.40 $ $ 29.240 $ 33,932 $ 27,850 27,850 57,090 $ 61,782 $ 9,270 3.40 31,518 27,850 59,368 $ 94,690 83,550 178,240 $ Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required, 4 Required 5 Required 6 Required 7 Required 8 Selling expense budget. Total ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 April May 540,000 $ 510,000 8% 43,200 $ 40,800 3,700 3,700 46,900 $ 44,500 $ Budgeted sales Sales commission percent Sales commissions Sales salaries Total budgeted selling expenses 8% June || 621,000 8% 49,680 3,700 53,380 $ $ 133,680 11,100 144,780 $ $ 10. Budgeted balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April May Salaries 19,000 $ 19,000 $ interest on long-term note 3.060 Total budgeted G&A expenses $ 22,060 $ 22,060 $ $ June 19,000 3,060 22,060 Total 57,000 9,180 66,180 3,060 $ I CUL Budgeted income statement for the enure Secur quarLEI nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Operating expenses / / / Total operating expenses As 0 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets Total current assets Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities 1 Stockholders' Equity ALE Total Stockholders' Equity Total Liabilities and Equity 1 EEN The management of Zigby Manufacturing prepared the following es ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders equity Total liabilities and equity $ 80,000 364,000 96,000 364,800 904, 800 610,000 (155, 000) 455,000 $1,359,800 $ 195,500 17,000 212,500 510,000 722,500 340,000 297, 300 637, 300 $1,359,800 To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 20,000 units. Forecasted sales in units are as follows: April, 20,000; May, 19,000; June, 19,500; and July, 20,000. Sales of 245,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $22.80 per unit. b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next mo requirements. The March 31 raw materials inventory is 4,800 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,500 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. C. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's expected unit sales. The March 31 finished goods inventory is 16,000 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $20 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.20 per direct labor hour. Depreciation of $23,400 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 6% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3.500. 9. Monthly general and administrative expenses include $17,000 administrative salaries and 0.9% monthly interest on the long- term note payable. h. The company expects 30% of sales to be for cash and the remaining 70% 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 month's raw materials purchases are fully paid in the next month J. The minimum ending cash balance for all months is $45,000. 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. k. Dividends of $15,000 are to be declared and paid in May. 1. No cash payments for income taxes are to be made during the second calendar quarter Income tax will be assessed at 35% in the quarter and paid in the third calendar quarter. m. Equipment purchases of $135,000 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.): 1. Sales budget 2. Production budget. 3. Raw materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Cash budget. 9. Budgeted income statement for the entire second quarter (not for each month separately). 10. Budgeted balance sheet