ces The management of Zigby Manufacturing prepared the following balance sheet for March 31 Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Assets ZIGBY MANUFACTURING Balance Sheet March 31 $ 80,000 455,000 Liabilities Liabilities and Equity Accounts payable $ 215,700 93,400 Loan payable 32,000 438,000 Long-term note payable 500,000 $747,700 Less: Accumulated depreciation $ 640,000 178,000 Equity 470,000 Common stock Retained earnings 355,000 433,700 788,700 Total assets $ 1,536,400 Total liabilities and equity $1,536,400 To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 25,000 units. Budgeted sales in units follow: April, 25,000, May, 17,100; June, 22.300; and July, 25,000. The product's selling price is $26.00 per unit and its total product cost is $21.90 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 4,670 pounds. The budgeted June 30 ending raw materials inventory is 6,000 pounds. Each finished unit requires 0.50 pound of direct materials) 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 20,000 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $16 per hour e. The predetermined variable overhead rate is $4.00 per direct labor hour. Depreciation of $40,787 per month is the only fixed a. Sales for March total 25,000 units. Budgeted sales in units follow: April, 25,000; May, 17,100, June, 22,300; and July, 25,000. The product's selling price is $26.00 per unit and its total product cost is $21.90 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 4,670 pounds. The budgeted June 30 ending raw materials inventory is 6,000 pounds. Each finished unit requires 0.50 pound of direct materials. 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 20,000 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $16 per hour. e. The predetermined variable overhead rate is $4.00 per direct labor hour. Depreciation of $40,787 per month is the only fixed factory overhead item. f. Sales commissions of 10% of sales are paid in the month of the sales. The sales manager's monthly salary is $5,000. g. Monthly general and administrative expenses include $21,000 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 $80.000. 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 $30,000 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 $100,000 are budgeted for the last day of June Amy 10. Cash budget. 11. Budgeted income statement for entire second quarter (not monthly). 12. Budgeted balance sheet at June 30. Complete this question by entering your answers in the tabs below. d Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 k Sales budget. ces ZIGBY MANUFACTURING Sales Budgets April May June Budgeted sales units Selling price per unit Total budgeted sales Req 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4. Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Production budget. Budgeted sales units Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Units to produce ZIGBY MANUFACTURING Production Budget April May June Total 17,100 22,300 25,000 80% 80% 80% Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Direct materials budget. (Round per unit values to 2 decimal places.) Units to produce ZIGBY MANUFACTURING Direct Materials Budget April May June Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Direct labor budget. (Round per unit values to 2 decimal places.) Units to produce tes Direct labor hours needed Cost of direct labor ZIGBY MANUFACTURING Direct Labor Budget April May June Total d Req 1 Req 2 Req 3 Req 4 Req 5 Req 61 Req 7 Req 8 to 10 Req 11 Req Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April May June Total Direct labor hours needed. ces Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted fixed overhead. Budgeted total factory overhead d ces Req 1 Req 2 Req 3. Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Selling expense budget. ZIGBY MANUFACTURING Budgeted sales Sales commissions Selling Expense Budget April May June Complete this question by terin Req 1 Req 2 Req 3 Req 4 Req 5 Req 61 Req 7 Req 8 to 10 Req 11 Req 12 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses 9. Schedule of cash payments for direct materials. 10. Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) ed Sales ok Cash receipts from Cash sales ences Collections of prior period sales Total cash receipts ZIBGY MANUFACTURING Schedule of Cash Receipts April May June 650,000 $ 444,600 $ 579,800 Schedule of Cash Payments for Direct Materials Materials purchases Cash payments for Current period purchases Prior period purchases Total cash payments April 199,700 $ 228,600 $ 242,300 Cach Rudnot d ces April May June Beginning cash balance Total cash available Less: Cash payments for: Cash Budget Total cash payments Preliminary cash balance Ending cash balance ces Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Loan balance April May June oped Book rences ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses kipped Book erences Total assets Liabilities Equity ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Liabilities and Equity d Total assets ces Liabilities Equity Total Liabilities and Equity Liabilities and Equity