Complete a master budget using linked spreadsheets in Microsoft Excel

Follow the formats outlined in the images: refer to demonstration problem and solution

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

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

a. Sales for March total 25,000 units. Forecasted sales in units are as follows: April 25,000: May, 17,000, June 22,400; July, 25,000. Sales of 259,000 units are forecasted for the entire year. The products selling price is $26.00 per unit and the total product cost is $21.65 per unit.

b. 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 4,650 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,900 units. Raw materials cost $20 per unit. Each finished unit requires .50 units of raw materials.

c. 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 20,000 units, which complies with the policy.

d. Each finished unit requires .50 hours of direct labor at a rate of $15 per hour.

e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.60 per direct labor hour. Depreciation of $39,710 per month is treated as fixed factory overhead.

f. Sales representatives commissions are 5% of sales and are paid in the month of the sales. The sales managers monthly salary is $4,900 per month.

g. Monthly general and administrative expenses include $34,000 administrative salaries and .8% monthly interest on the long-term note payable.

h. 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 is collected in the month of the sale)

i. 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.

j. The minimum ending cash balance for all months is $98,000. 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 $29,000 are to be declared and paid in May

l. 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.

m. Equipment purchases of $149,000 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 (April, May, June) except as otherwise noted. Round calculations to the nearest whole dollars,

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. Schedule of Expected Cash Receipts and Expected June 30 Balance of Accounts Receivable

9. Schedule of Expected Cash Payments and Expected June 30 Balance of Accounts Payable

10. Cash Budget

11. Budgeted Income statement for the entire second quarter (not for each month separately)

12. Budgeted Statement of Retained Earnings

13. Budgeted Balance Sheet

Payne Company's management asks you to prepare ils master hudget using the fol wing information. NEED-TO KNOW The budget is to cover the months of April, May, and June of 2015 COMPREHENSIVE 1 Master Budget- Manufacturer PAYNE COMPANY Liabilities and Equity Cash 50,000 Accounts payable 63,818 Accounts receivable 75,000 Short-term notes payable 2.000 Raw materials inventory 30,798" Total current liabilities 75,818 96,600 inished goods Long-term note payable 200,000 inventory Total current assets $352,398 Tokal liabilities 275,818 Equipment 480,000 Common stock 435,000 Less: Accumulatod depreciation 190,000) Retained earnings 580 Equipment, net 390,000 Tocal stockhalders' equity 466,580 Total assets $742,398 Total liabilities and equity $742,398 *2A25 pounds S12?0. rounded aearest whole dollar "8A00 units 50 per unit Additional I nformation a. Sales for March total 2,000 units. Expected sales 0,500 (April), 9,50 (May), 10000 (in ul (June), and 10.500 July). The product's selling price is $25 per unit. 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 3l finished goods inventory is 8,400 units, which complic $11.50 per unit, including per uni with the policy The product's manufacturing cost costs of S6.35 als (.5 lbs. al S12.70 per lh.), $3.75 ur direct labor /4 hour X $15 direct male rale per hour), $0.90 for variable overhead, and S0.50 for fixed overhead. Fixed overhead consists entirely of S5.000 of monthly depreciation expense. Company policy also calls for a given month's ending raw materials inventory to equal 50% of next month's expected materials necded for production. The March 31 inventory is 2,425 units of materials, which complies with the policy, The company expects have 2,10) units of malerials inventory on June 30 c. Sales representatives' commissions are 12% of sales and are paid in the month of lhe sales. The sales manager's monthly salary wi be S3,500 in April and $4,000 per month thereafter. d. Monthly general and administrative expenses include S8.000 administrative salaries and 0.9% monthly interest on the long-term note payable. e. The company expects 30% of sal les to be for cash and the remaining 70% on credit. Receivables are collected in ful the month fol owing the sale (none is collected he month of the sale) All direct malerials Payal month's purchases are fully paid the next month. Materials cost S12.70 per pound. g. The minimum ending cash balance for al months is $50,000. If e company borrow necessary. gh cash using a short-term note to reach the minimum. Short-tcrm notes require an interest pay- ment of 150 at each month-end (before any repayment). If the ending cash balance exceeds the mini- mum, the excess will be applied to repaying the short-term notes payable balance. Dividends of S100,000 are ly he declared and paid in May. i. No cash payments for income taxes are to be made during the second calendar quarter. be assessed at 35% in the quarter. i. Equipment purchases of S55.000 arc schcduled for Junc Required Prepare the lollowing budgets and olher financial informalion as required: 1. Sales budget, including budgeted sales for July 2. Production budget. 3. Direct materials budget. Round costs of materials purchases to the nearest dollar. 4. Direct labor budget. Payne Company's management asks you to prepare ils master hudget using the fol wing information. NEED-TO KNOW The budget is to cover the months of April, May, and June of 2015 COMPREHENSIVE 1 Master Budget- Manufacturer PAYNE COMPANY Liabilities and Equity Cash 50,000 Accounts payable 63,818 Accounts receivable 75,000 Short-term notes payable 2.000 Raw materials inventory 30,798" Total current liabilities 75,818 96,600 inished goods Long-term note payable 200,000 inventory Total current assets $352,398 Tokal liabilities 275,818 Equipment 480,000 Common stock 435,000 Less: Accumulatod depreciation 190,000) Retained earnings 580 Equipment, net 390,000 Tocal stockhalders' equity 466,580 Total assets $742,398 Total liabilities and equity $742,398 *2A25 pounds S12?0. rounded aearest whole dollar "8A00 units 50 per unit Additional I nformation a. Sales for March total 2,000 units. Expected sales 0,500 (April), 9,50 (May), 10000 (in ul (June), and 10.500 July). The product's selling price is $25 per unit. 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 3l finished goods inventory is 8,400 units, which complic $11.50 per unit, including per uni with the policy The product's manufacturing cost costs of S6.35 als (.5 lbs. al S12.70 per lh.), $3.75 ur direct labor /4 hour X $15 direct male rale per hour), $0.90 for variable overhead, and S0.50 for fixed overhead. Fixed overhead consists entirely of S5.000 of monthly depreciation expense. Company policy also calls for a given month's ending raw materials inventory to equal 50% of next month's expected materials necded for production. The March 31 inventory is 2,425 units of materials, which complies with the policy, The company expects have 2,10) units of malerials inventory on June 30 c. Sales representatives' commissions are 12% of sales and are paid in the month of lhe sales. The sales manager's monthly salary wi be S3,500 in April and $4,000 per month thereafter. d. Monthly general and administrative expenses include S8.000 administrative salaries and 0.9% monthly interest on the long-term note payable. e. The company expects 30% of sal les to be for cash and the remaining 70% on credit. Receivables are collected in ful the month fol owing the sale (none is collected he month of the sale) All direct malerials Payal month's purchases are fully paid the next month. Materials cost S12.70 per pound. g. The minimum ending cash balance for al months is $50,000. If e company borrow necessary. gh cash using a short-term note to reach the minimum. Short-tcrm notes require an interest pay- ment of 150 at each month-end (before any repayment). If the ending cash balance exceeds the mini- mum, the excess will be applied to repaying the short-term notes payable balance. Dividends of S100,000 are ly he declared and paid in May. i. No cash payments for income taxes are to be made during the second calendar quarter. be assessed at 35% in the quarter. i. Equipment purchases of S55.000 arc schcduled for Junc Required Prepare the lollowing budgets and olher financial informalion as required: 1. Sales budget, including budgeted sales for July 2. Production budget. 3. Direct materials budget. Round costs of materials purchases to the nearest dollar. 4. Direct labor budget