PLEASE ANSWERS ONLY... THIS IS A REALLY LONG QUESTION
The management of Zigby Manufacturing prepored the following balance sheet for Maret 31. To prepore a master budget for Apri, May, and June, management gathers the foliowing information. a. Sales for March total 20,500 units. Budgeted sales in Chits followr Apri, 20,500, May, 19,500; June, 20,000- and July, 20,500. The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit. b. Raw materials inventory consists solely of direct materials that cost $20 per pound. Company polcy 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 imentory is 4.925 pounds. The budgeted June 30 ending row materiais inventory is 4.000 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 s of the next month's budgeted unit sales: The March 31 finished goods inventocy is 16,400 units. c. Company policy calls for a given month's ending finished goods inventory to equal 805 of the next month's budgeted unit sales The Mareh 31 finished goods inventory is 16,400 units. d. Each finished unit requires 0,50 hour of direct labor at a rate of $15 per hour. e. The predetermined variable overhead rate is $2.70 per direct labor hour. Depreciation of $20,000 per month is the only foced factory overhead item. 1. Sales commissions of 8% of sales ate paid in the month of the sales. The sales manager's monthly salary is $3,000. 9. Monthly general and administrative expenses include $12.000 for administrative salaties 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 $40,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 186 at each monti-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 $10,000 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 monthis of April, May, and June: 1. Sales budget. Required: Prepare the following budgets for the months of Apra, May, and June: 1. Sales budget 2. Production budget. 3. Direct materiats budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Seling 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 anewers in the tabs betow. 12. Budgeted bolance sheet at June 30 . Complete this question by entering your answers in the tabs below. Snles budget
