I have uploaded all the information for the Master Budget I need to complete. I cannot figure out the numbers I need to put into the categories. I sent you a photo of the data that is incorrect. I have done a lot of work on this Master budget but cannot finish the cash budget.

To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 20,500 units. Forecasted sales in units are as follows: April, 20,500; May, 19,500; June, 20,000; and July, 20,500. Sales of 240,000 units are forecasted for the entire year. The product's selling price is $23.85 per unit and its total product cost is $19.85 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 4,925 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,000 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 16,400 units, which complies with the policy. d. Each finished unit requires 0.50 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 $2.70 per direct labor hour. Depreciation of $20,000 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 8% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,000. g. Monthly general and administrative expenses include $12,000 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 Allected in full in the month following the sale (none are collected in the month of the sale). I. 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 $40,000. 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. The management of Zigby Manufacturing prepared the fo k nces ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash $ 40,000 Accounts receivable 342,248 Raw materials inventory 98,500 Finished goods inventory 325,540 Total current assets 806,288 Equipment, gross 600,000 Accumulated depreciation (150,000) Equipment, net 450,000 Total assets $1,256,288 Liabilities and Equity Accounts payable $ 200,500 Short-term notes payable 12,000 Total current liabilities 212,500 Long-term note payable 500,000 Total liabilities 712,500 Common stock 335,000 Retained earnings 208,788 Total stockholders' equity 543,788 $ 40,000 342,248 X 382,248 98500 x 033 198,000 x 147,750 53,190 X 39,114 3,000 Beginning cash balance Cash receipts from customers Total cash available Cash payments for: Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Taxes paid X Dividends Loan interest Long-term note interest Purchases of equipment Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 10,800 14,000 X 10,000 X 475,854 0 0 0 Loan balance May ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 April Beginning cash balance $ 40,000 Cash receipts from customers 342,248 Total cash available 382,248 Cash payments for: Raw materials 9,850 Direct labor 9,850 Variable overhead 53,190 Sales commissions 39,114 Sales salaries 3.000 General & administrative 10,800 salaries Taxes paid 14,000 Dividends 10,000 Loan interest Long-term note interest Purchases of equipment Total cash payments 149,804 Preliminary cash balance 'Additional loan (loan repayment) Ending cash balance 0 0 10,800 14,000 10,000 General & administrative salaries Taxes paid Dividends Loan interest Long-term note interest Purchases of equipment Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 149,804 0 0 Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Total spreme 20.500 Next, mo. Kaya geted DD Rotterdanyone E. o futur 16000 t +19500 trg 20520 march 2017 prepare a complete budget luct COST sale P1 Sales budget 240,000 unit for entire | April May teve . July sales inits 20,500 units 20,500 19 500 5x123.85 ( Pudget sales 25. ar y $23.85 18488,925 465,075 477,000 488925 Production Budget Bulgakie wok April may Next mo put curte Saussures ne too buly 20,000 30% 1x 80% Budgeted and 15600 1 6400 Begin with TAON Brillgeted Tales 420.500 +20,000 Bu hedefort 36 10D 35 500 36400 He 15 600 - 160.00 produrres 19700 19900 20700 19700 1.9.900 60,000 units to be produced Raw materials Budget APRI May Production Budget 19700 19900 material requirements 20,400 be the 7,50 X Budgered materials needed for Production 9850 19950 10200 problem TALL LL 10ktory Budgeted ending + 5 100-250+409 Ende der 1575,0 14200 Deduct Begin inventore very FA975 75100 purchased 9900 100 75 4 9100 Duderet Units to be 20 400 10205 #374975 wres 24825 han 4025 Materials to be PTP 11ECOU material price Per Total cost of Dm X20 420 x 20 198000 $20 1500 $ 182000 purchases Le P Y: 50 H 150 9950 110200 Total Labor Direct Labor Budget Total All Bridgeted Production _f Tune 19100 Priments 19906 20,400 9950 Budgeted DL cast 1147750 1149250 153000 1+$15. $15. Factory Overhead Budget APRIL Toid cher) 110,000 Pequired may 60 FTS Budapperhead Budgether head X09 marle pays 52.70 22.00 250 Bridgeted garante 33190 5050 162,000 To 227322770 13,190 75,730 1 208 selling Expense Budaet APRIL May Total 488 925 465 075 477000 sales Commission % ly, OB sales commissions 3914 37206 3816 for Sales H 3000 +3000 3000 4300 42114 $40206 P41160 $123,476 S 0 General and Administrative Expense Budgets APRIL June may , Salaries interest on long-term I go 12,000 H1003 12,000 Total Expenses 110800 10500 10.800 exy . Juve Total Cash Budget Calculation of cash receipts from customers APRIL may There Total Budgeted 1488,925 465,075 477,000. cash sales 307 146678 139523 143100 Sales on ccelit 207 34 22148 325553 333900 Total cast receipts from customers APRIL may current neonas 1 4 4 478 139523 | 1431501 hefore collectionshor 242, 248 342248325552 4898,92 1481971 (46 8 603 Cash BUDGET May une Begining cast 40,000 40 000 Add from customers 488926 481771 Totar as Available 528926 Less cast Direch materials 1198000 Direct Labor 1147750 lover 53190 commissions 39114 3.000 General & Administrate 10800 income tages 35% 4000 Divillads 10,000 10,000 Tere pts flyouts Salls salaries Interest on 140,000 Bank Loansito Long term note int97 10800 Turcuast of and meath Freliminary Cash Balance

Question

I have uploaded all the information for the Master Budget I need to complete. I cannot figure out the numbers I need to put into the categories. I sent you a photo of the data that is incorrect. I have done a lot of work on this Master budget but cannot finish the cash budget.

image text in transcribed

To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 20,500 units. Forecasted sales in units are as follows: April, 20,500; May, 19,500; June, 20,000; and July, 20,500. Sales of 240,000 units are forecasted for the entire year. The product's selling price is $23.85 per unit and its total product cost is $19.85 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 4,925 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,000 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 16,400 units, which complies with the policy. d. Each finished unit requires 0.50 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 $2.70 per direct labor hour. Depreciation of $20,000 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 8% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,000. g. Monthly general and administrative expenses include $12,000 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 Allected in full in the month following the sale (none are collected in the month of the sale). I. 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 $40,000. 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. The management of Zigby Manufacturing prepared the fo k nces ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash $ 40,000 Accounts receivable 342,248 Raw materials inventory 98,500 Finished goods inventory 325,540 Total current assets 806,288 Equipment, gross 600,000 Accumulated depreciation (150,000) Equipment, net 450,000 Total assets $1,256,288 Liabilities and Equity Accounts payable $ 200,500 Short-term notes payable 12,000 Total current liabilities 212,500 Long-term note payable 500,000 Total liabilities 712,500 Common stock 335,000 Retained earnings 208,788 Total stockholders' equity 543,788 $ 40,000 342,248 X 382,248 98500 x 033 198,000 x 147,750 53,190 X 39,114 3,000 Beginning cash balance Cash receipts from customers Total cash available Cash payments for: Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Taxes paid X Dividends Loan interest Long-term note interest Purchases of equipment Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 10,800 14,000 X 10,000 X 475,854 0 0 0 Loan balance May ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 April Beginning cash balance $ 40,000 Cash receipts from customers 342,248 Total cash available 382,248 Cash payments for: Raw materials 9,850 Direct labor 9,850 Variable overhead 53,190 Sales commissions 39,114 Sales salaries 3.000 General & administrative 10,800 salaries Taxes paid 14,000 Dividends 10,000 Loan interest Long-term note interest Purchases of equipment Total cash payments 149,804 Preliminary cash balance 'Additional loan (loan repayment) Ending cash balance 0 0 10,800 14,000 10,000 General & administrative salaries Taxes paid Dividends Loan interest Long-term note interest Purchases of equipment Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 149,804 0 0 Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Total spreme 20.500 Next, mo. Kaya geted DD Rotterdanyone E. o futur 16000 t +19500 trg 20520 march 2017 prepare a complete budget luct COST sale P1 Sales budget 240,000 unit for entire | April May teve . July sales inits 20,500 units 20,500 19 500 5x123.85 ( Pudget sales 25. ar y $23.85 18488,925 465,075 477,000 488925 Production Budget Bulgakie wok April may Next mo put curte Saussures ne too buly 20,000 30% 1x 80% Budgeted and 15600 1 6400 Begin with TAON Brillgeted Tales 420.500 +20,000 Bu hedefort 36 10D 35 500 36400 He 15 600 - 160.00 produrres 19700 19900 20700 19700 1.9.900 60,000 units to be produced Raw materials Budget APRI May Production Budget 19700 19900 material requirements 20,400 be the 7,50 X Budgered materials needed for Production 9850 19950 10200 problem TALL LL 10ktory Budgeted ending + 5 100-250+409 Ende der 1575,0 14200 Deduct Begin inventore very FA975 75100 purchased 9900 100 75 4 9100 Duderet Units to be 20 400 10205 #374975 wres 24825 han 4025 Materials to be PTP 11ECOU material price Per Total cost of Dm X20 420 x 20 198000 $20 1500 $ 182000 purchases Le P Y: 50 H 150 9950 110200 Total Labor Direct Labor Budget Total All Bridgeted Production _f Tune 19100 Priments 19906 20,400 9950 Budgeted DL cast 1147750 1149250 153000 1+$15. $15. Factory Overhead Budget APRIL Toid cher) 110,000 Pequired may 60 FTS Budapperhead Budgether head X09 marle pays 52.70 22.00 250 Bridgeted garante 33190 5050 162,000 To 227322770 13,190 75,730 1 208 selling Expense Budaet APRIL May Total 488 925 465 075 477000 sales Commission % ly, OB sales commissions 3914 37206 3816 for Sales H 3000 +3000 3000 4300 42114 $40206 P41160 $123,476 S 0 General and Administrative Expense Budgets APRIL June may , Salaries interest on long-term I go 12,000 H1003 12,000 Total Expenses 110800 10500 10.800 exy . Juve Total Cash Budget Calculation of cash receipts from customers APRIL may There Total Budgeted 1488,925 465,075 477,000. cash sales 307 146678 139523 143100 Sales on ccelit 207 34 22148 325553 333900 Total cast receipts from customers APRIL may current neonas 1 4 4 478 139523 | 1431501 hefore collectionshor 242, 248 342248325552 4898,92 1481971 (46 8 603 Cash BUDGET May une Begining cast 40,000 40 000 Add from customers 488926 481771 Totar as Available 528926 Less cast Direch materials 1198000 Direct Labor 1147750 lover 53190 commissions 39114 3.000 General & Administrate 10800 income tages 35% 4000 Divillads 10,000 10,000 Tere pts flyouts Salls salaries Interest on 140,000 Bank Loansito Long term note int97 10800 Turcuast of and meath Freliminary Cash Balance