March 31 Assets Liabilities and Equity Cash $ 56,809 Liabilities Accounts receivable 382,200 Accounts payable Raw materials inventory 84,200 Loan payable Finished goods, inventory 337,680 Long-ters note payable Equipment $ 632,800 Equity Less: Accumulated depreciation 166,000 466,eee Common stock Retained earnings Total assets 3 1,326, 080 Total Habilities and equity To prepare a master budget for April, May, and June, management gathers the following information. $ 189,800 28,090 See, Bee $ 217,800 351,800 252, 280 688, 280 31 326,080 a. Sales for March total 21,000 units. Budgeted sales in units follow. April, 21,000: May, 15,800, June, 21,600, and July, 21,000. The product's selling price is $26.00 per unit and its total product cost is $20.10 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 4.210 pounds. The budgeted June 30 ending raw materials inventory is 5,600 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 unt soles. The March 31 finished goods inventory is 16,800 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of 512 per hour e. The predetermined variable overhead rate is $4.30 per direct labor nour Depreciation of 537,960 per month is the only fored factory overhead item, 7. Sales commissions of 7% of sales are paid in the month of the sales. The sales manager's monthly salary is $4.500. G. Monthly general and administrative expenses include $28,000 for administrative salaries and 0.5% 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), 1. All raw materials purchases are on credit, and accounts payable are solely ted to raw materials purchases, Raw materials purchases are fully paid in the next month (none are paid in the month of purchase), 3. The minimum ending cash balance for all months is $56,000. If necessary, the company borrows enough cash using loan to reach the minimum Loans require an interest payment of at each month-end before any repayment. If the month-end preminary cash balance exceeds the minimum, the excess will be used to repay any loans k. Dividends of $26.000 are budgeted to be declared and paid in May. 1. No cash payments for income taxes are budgeted in the second calendar Quartet Income tax will be assessed at 35% in me 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. Required: Prepare the following budgets for the months of April, May, and June: 1. Sales budget 2. Production budget 3. Direct materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget 7. General and administrative expense budget 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 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. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 to 10 Reg 11 Reg 12 Sales budget ZIGBY MANUFACTURING Sales Budgets April May June Budgeted sales units Selling price per unit Total budgeted sales $ 0 S os 0 Req2 > Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 to 10 Reg Production budget. ZIGBY MANUFACTURING Production Budget April May June Total Budgeted sales units 15,800 21.600 Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units 21.000 80% 80% 8096 Units to produce Direct materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Materials Budget April May June Units to produce 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. Reg 1 Reg 2 Reg 3 Rea 41 Reg 5 Reg 6 Reg 7 Reg 8 to 10 Reg 11 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April May June Units to produce Total Direct labor hours needed 0 Cost of direct labor Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 to 10 Reg 11 Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April May June Direct labor hours needed Total Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg 3 Reg 4 Reg 5 Ffa 6 6 Req 7 Reg 8 to 10 Req 11 Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April May June Budgeted sales Sales commissions Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Req 4 Reg 5 Reg 6 Rd457 Req 8 to 10 Reg 11 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses Req1 Reg 2 Reg 3 Req4 Req 5 Req 6 Req 7 Req Budgeted balance sheet at June 30. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets 0 Total assets Liabilities and Equity Liabilities Equity Total Liabilities and Equity