mequrea:

$1$

Cues burdof $2.$ Rroduction :

Directmatenjos $0-$

Orect thbor budget

Factory overicesd budget

schedue of cash receiptes

T$1.$ bucgeted incone statesent for enbre iecond quarte $($not monthen

Budgeted balance speet at June jo

Cemplete this qoestion breatering voer aerwrry in I he tatos below $1$

Cemplete Ihis quesion by rateriag veer answers in the fab brlowThe management of Zigby Manufacturing prepared the following Dalance sheet for March $31.$

T$$ pr$$par$$ a mast$$r budget for April, May, and June, management gathers the following Informatuon.

Sales for March total $73,800$ units. Budgeted sales in units follow: April, $73,800$; May, $70,200$; June, $72,000$; and July, $73,800.$ The

product's selling price is $$24\mathrm{.}00$ per unit and its total product cost is $$19\mathrm{.}85$ per unit.

b$.$ Raw materials inventory consists solely of direct materlals that cost $$20$ per pound. Company pollcy calls for a given month's

ending materials inventory to equal $50\%$ of the next month's direct materals requrements. The March $31$ raw materlals ifventory

is $17730$ pounds. The budgeted June $30$ ending raw materlals inventory is $14,400$ pounds. Each finished unit requires $0\mathrm{.}50$

pound of direct matenals.

c$.$ Compary pollcy calls for a given month's ending finished goods inventory to equal $80\%$ of the next montn's budgeted unit sales.

The March $31$ finshed goods inventory is $59,040$ units.

d$.$ Each finished unit requires $0\mathrm{.}50$ hour of direct labor at a rate or $$15$ per nour.

e$.$ The predetermined varable overhead rate is $$2\mathrm{.}70$ per drect labor hour. Depreciation of $$72\mathrm{.}000$ per month is the only fixed

factory overhead item.

Sales commissions of $8\%$ of sales are pald in the month of the sales. The sales manager's monthly salary is $$10,800.$

g$.$ Monthly general and administrative expenses include $$43\mathrm{.}200$ for administrative salares and $0\mathrm{.}9$ so 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$).$

All raw maternals purchases are on credit, and accounts payable are solely tied to raw maternals purchases. Raw materlals

purchases are fully pald in the next month $($none are pald in the month of purchase$).$

The minimum ending cash balance for all months is $$144,000.$ If necessary, the company borrows enough cash using a loan to

reach the minimum. Loans requre an interest payment of $18$ at each month$-$end $($Defore any repayment. If the month$-$end

prellminary cash balance exceeds the minimum, the excess will be used to repoy any loans

k$.$ Divdends of $$36,000$ are budgeted to be declared and pald in May.

No cash payments for income taxes are budgeted in the second calendar quartes. Income tax will be assessed at $35\%$ in the

quarter and budgeted to be pasd in the third calendar quarter.

m$.$ Equipment purchases of $$360,000$ are budgeted for the last day of June

Requlred:

$1$ Sames bugget