Homework Chapter 7 6 Saved Help Sa 4 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 13 points Assets Cash Accounts receivable Raw materials inventory Pinished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets $ 80,000 487,500 93,390 438,000 1,098,890 640,000 eBook (170,000) 470.000 $1,568,890 Print 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 $ 215,690 32,000 247,690 520,000 767,690 355,000 446,200 801,200 $1,568,890 References Total liabilities and equity 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, 17,100; June, 22,300; and July 25,000. Sales of 260,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $21.90 per unit. b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. The March 31 raw materials inventory is 4,670 units, which complies with the policy. The expected June 30 ending raw materials inventory is 6,000 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 20,000 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $16 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.00 per direct labor hour f. Sales representatives' commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is g. Monthly general and administrative expenses include $21,000 administrative salaries and 0.9% monthly interest on the long-term 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 i. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases j. The minimum ending cash balance for all months is $99,000. If necessary, the company borrows enough cash using a short-term Depreciation of $40,790 per month is treated as fixed factory overhead $5,000. note payable following the sale (none are collected in the month of the sale). are fully paid in the next month. note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the 13 points eBook ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance k. Dividends of $30,000 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 Print quarter and paid in the third calendar quarter m. Equipment purchases of $150,000 are budgeted for the last day of June References Requirec 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. Complete this question by entering your answers in the tabs below 4 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. 13 points Complete this question by entering your answers in the tabs below eBook Required 1 Required 2 Required 3 Required 4 Required 5Required 6 Required 7 Required 8 Required 9 Required 10 Print Sales budget. (Round Budgeted unit price to 2 decimal places.) ZIGBY MANUFACTURING References Sales Budget April, May, and June 2017 Budgeted Budgeted Budgeted Unit Sales Unit Price Sales Dollars April 2017 May 2017 June 2017 Totals for the second quarter Required 1 Required 2 4 S. 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. 13 points Complete this question by entering your answers in the tabs below eBook Required 1 Required 2-Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Print Production budget. ZIGBY MANUFACTURING Production Budget April, May, and June 2017 References April May June Next month's budgeted sales (units) Ratio of inventory to future sales 17,100 80% 22,300 25,000 80% 80% Required units of available production Units to be produced Required 1 Required 3 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. 13 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3-Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Print Raw materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 References April May June Production budget (units) Materials needed for production Total materials requirements (units) Materials to be purchased Material price per unit Budgeted raw material purchases K Required 2 Required 4 4 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. 13 points Complete this question by entering your answers in the tabs below eBook Required 1 Required 2 Required 3 Required 4: Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Print Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 References April May June Total Budgeted production (units) Total labor hours needed Budgeted direct labor cost Required 3 Required 5> 4 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. 13 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3 Required 4 Required 5Required 6 Required 7 Required 8 Required 9 Required 10 Print Factory overhead budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 References April May June Total Labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead K Required 4 Required 6 4 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. 13 points Complete this question by entering your answers in the tabs below eBook Required 1 Required 2 Required 3 Required 4 Required 5Required 6 Required 7 Required 8 Required 9 Required 10 Print Selling expense budget ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 May References April June Budgeted sales Sales commissions Required 5 Required 7 4 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 13 points eBook Complete this question by entering your answers in the tabs below Print Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 General and administrative expense budget References ZGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April May June Total budgeted G&A expenses Required 6 Required 8 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 Sales on credit 25% 75% Total cash receipts from customers 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: Homework Chapter 7 6 Saved Help Sa 4 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 13 points Assets Cash Accounts receivable Raw materials inventory Pinished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets $ 80,000 487,500 93,390 438,000 1,098,890 640,000 eBook (170,000) 470.000 $1,568,890 Print 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 $ 215,690 32,000 247,690 520,000 767,690 355,000 446,200 801,200 $1,568,890 References Total liabilities and equity 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, 17,100; June, 22,300; and July 25,000. Sales of 260,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $21.90 per unit. b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. The March 31 raw materials inventory is 4,670 units, which complies with the policy. The expected June 30 ending raw materials inventory is 6,000 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 20,000 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $16 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.00 per direct labor hour f. Sales representatives' commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is g. Monthly general and administrative expenses include $21,000 administrative salaries and 0.9% monthly interest on the long-term 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 i. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases j. The minimum ending cash balance for all months is $99,000. If necessary, the company borrows enough cash using a short-term Depreciation of $40,790 per month is treated as fixed factory overhead $5,000. note payable following the sale (none are collected in the month of the sale). are fully paid in the next month. note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the 13 points eBook ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance k. Dividends of $30,000 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 Print quarter and paid in the third calendar quarter m. Equipment purchases of $150,000 are budgeted for the last day of June References Requirec 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. Complete this question by entering your answers in the tabs below 4 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. 13 points Complete this question by entering your answers in the tabs below eBook Required 1 Required 2 Required 3 Required 4 Required 5Required 6 Required 7 Required 8 Required 9 Required 10 Print Sales budget. (Round Budgeted unit price to 2 decimal places.) ZIGBY MANUFACTURING References Sales Budget April, May, and June 2017 Budgeted Budgeted Budgeted Unit Sales Unit Price Sales Dollars April 2017 May 2017 June 2017 Totals for the second quarter Required 1 Required 2 4 S. 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. 13 points Complete this question by entering your answers in the tabs below eBook Required 1 Required 2-Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Print Production budget. ZIGBY MANUFACTURING Production Budget April, May, and June 2017 References April May June Next month's budgeted sales (units) Ratio of inventory to future sales 17,100 80% 22,300 25,000 80% 80% Required units of available production Units to be produced Required 1 Required 3 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. 13 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3-Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Print Raw materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 References April May June Production budget (units) Materials needed for production Total materials requirements (units) Materials to be purchased Material price per unit Budgeted raw material purchases K Required 2 Required 4 4 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. 13 points Complete this question by entering your answers in the tabs below eBook Required 1 Required 2 Required 3 Required 4: Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Print Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 References April May June Total Budgeted production (units) Total labor hours needed Budgeted direct labor cost Required 3 Required 5> 4 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. 13 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3 Required 4 Required 5Required 6 Required 7 Required 8 Required 9 Required 10 Print Factory overhead budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 References April May June Total Labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead K Required 4 Required 6 4 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. 13 points Complete this question by entering your answers in the tabs below eBook Required 1 Required 2 Required 3 Required 4 Required 5Required 6 Required 7 Required 8 Required 9 Required 10 Print Selling expense budget ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 May References April June Budgeted sales Sales commissions Required 5 Required 7 4 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 13 points eBook Complete this question by entering your answers in the tabs below Print Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 General and administrative expense budget References ZGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April May June Total budgeted G&A expenses Required 6 Required 8 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 Sales on credit 25% 75% Total cash receipts from customers 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