Inventory The management of Zigby Marfacturing prepared the following estimated balance sheet for March 2013 ZIGGY MANUFACTURING Estimated Balance Sheet March 31, 2019 $ 69,000 Accounts receivable 432,000 Raw Baterials inventory 86,00 Finished goods 348,480 Total current assets 935,450 Equipment 614,000 Accumulated (157.000 depreciation Equipment, net 457,000 Total assets 51,392,480 Liabilities and Equity Accounts payable $ 178,70 Short-tern notes payable 19,00 Total current Liabilities 197,700 Long-tern note payable 515 000 Total Liabilities 212,700 Common stock 342.000 Retained earnings 337,280 Total stockholders' 679.780 equity Total' liabilities and equity $1,392, 480 e 30 ending 050 To prepare a master budget for Aprt. Mary, and June of 2019. minagement gathers the following information Siestor March tot 18.000 units Forecasted less we as follows: April, 18,000, May 12,000, June 20700, and 18,000. Sales of 247000 units are forecasted for the entire year. The products selling prices $30.00 per unit and its total product costs $24.20 per unit Company policy calls for a given months endiraw materials inventory to equal 50% of the next month's materials requirements. The March 31 row materials inventory is 4.300 units which complies with the policy. The expected w materials inventory is 4700 units. Raw materials com $20 perunt. Each finished unt requires units of raw materials Company policy calls for a given morts ending finished goods Inventory to equal os of the next month's expected on cales. The March 1 finished goods inventory s 14,400 units, which complies with the policy Overhead is located based on direct labor hours. The predetermined variable covered later is $340 per direct labor hour. Depreciation of 527.850 per month is treated as feed factory overhead Soles representatives commission wes of sales and are paid in the month of the soles. The sales manager's monthly salary $3.700 erat and administrative expenses include $10.000 dministrative series and monthly interest on the long-term note payable The common perts con crede Receivables are collected in the the sale none we collected in the month of the sale Materias purchase the res pre on credend ne payetles and from any other transaction. One month's Pow ending cash balance for all months. 555.000 necessary, the company borrowentuh cash using shorter not to reach the minimum, Shortcentes require an interest payment of teach month and any repayment of the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance Dividends of $17.000 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 Gore -Equipment purchases of $137.000 are budgeted for the last day of June Pefore Required Prepare the following budgets and other francial information as required. All budgets and other financial information should be prepared for the second calendar Quarter, except as otherwise noted below. Round calculations to the nearest whole della scept for the amount of cash sales, which should be reunded down to the nearest whole dollar) 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 Cashbudget 9. Budgeted income statement for the entire second quarter not for each monthly 90. Budgeted balance sheet
