Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all parts asap thanks The management of Zigby Manufacturing prepared the following balance sheet for March 31 . To prepare a master budget

please answer all parts asap thanks image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The management of Zigby Manufacturing prepared the following balance sheet for March 31 . To prepare a master budget for Apri, May, and June, management gathers the following information. a. Sales for March total 20,000 units, Budgeted sales in units follow: April, 20,000; May, 19,000; June, 19,500; and July, 20,000. The product's selling price is $27.00 per unit and its total product cost is $22.80 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 4.800 pounds. The budgeted June 30 ending row mateniais inventory is 4,500 pounds. Each finished unit requires 0.50 pound of direct c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit soles. materials The March 31 finished qoods inventory is 16,000 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $20 per hour. e. The predetermined variable ovemead rate is $3.20 per direct labor hour. Depreciation of $23,400 per month is the only fixed factory overhead item. 1. Soles commissions of 6% of sales are pald in the month of the sales. The sales manager's monthly salary is $3,500. a. Sales for March total 20,000 units. Budgeted sales in units follow: April, 20,000; May, 19,000; June, 19,500; and July, 20,000. The product's selling price is $27.00 per unit and its total product cost is $22.80 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 4.800 pounds. The budgeted June 30 ending raw materials inventory is 4,500 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 unit sales: The March 31 finished goods inventory is 16,000 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $20 per hour. e. The predetermined variable overhead rate is $3.20 per direct labor hour. Depreciation of $23,400 per month is the only flxed factory overhead item. f. Sales commissions of 6% of saies are paid in the month of the sales. The sales manager's monthly salary is $3,500. 9. Monthly general and administrative expenses include $17,000 for administrative salaries and 0.9% monthly interest on the Iong-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 tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase). j. The minimum ending cash balance for all months is $80,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of ts at each month-end (before any repayment). If the month-end preliminary. cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $15,000 are budgeted to be declared and paid in May. 1. No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the 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. Sales 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. Sales 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. Production budget. Complete this question by entering your answers in the tabs below. Direct materiais budget. (Round per unit values to 2 decimal places.) Complete this question by entering your answers in the tabs below. Direct labor budget. (Round per unit values to 2 decimal places.) Complete this question by entering your answers in the tabs below. Factory overhead budget. (Round variable overhead rate values to 2 decimai places.) Complete this question by entering your answers in the tabs below. Selling expense budget. Complete this question by entering your answers in the tabs below. General and administrative expense budget. 8. Schedule of cash recelpts. 9. Schedule of cash payments for direct materials: 10. Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Ending cash balance Budgeted income statement for entire second quarter (not monthly). (Round your final answers to the nearest whole dollar.) Budgeted balance sheet at June 30. (Round your final answers to the nearest whole dollar.) Total assets Liabilities and Equity Liabilities Equity \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline Total Liabilities and Equity & & \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Report On Trade Conditions In China

Authors: Harry R. Burrill, Raymond F. Crist

1st Edition

1138617806, 9781138617803

More Books

Students also viewed these Accounting questions

Question

1. What is a security? LOP8

Answered: 1 week ago

Question

X X

Answered: 1 week ago

Question

(1 point) Calculate 3 sin x cos x dx.

Answered: 1 week ago