Please fill in all required boxes for direct materials budget & direct labor budget. Thank you!
To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 102,500 units. Budgeted sales in units follow: April, 102,500; May, 97,500; June, 100,000; and July, 102,500. 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 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 24,625 pounds. The budgeted June 30 ending raw materials inventory is 20,000 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% of the next month's budgeted unit sales. The March 31 finished goods inventory is 82,000 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 $100,000 per month is the only fixed factory overhead item. f. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $15,000. g. Monthly gencral and administrative expenses include $60,000 for administrative salaries and 0.9% monthly interest on the long-term note \begin{tabular}{l|l|l|} \hline 9 & \multicolumn{2}{|c|}{ Zigby Manufacturing } \\ \hline 10 & Direct Materials Budget \\ \hline 11 & April & \\ 12 & Units to produce & \\ 13 & Materials Required per unit (pounds) \\ 14 & Materials Needed for production (pounds) \\ 15 & ADD: Disired Ending Inventory \\ 16 & Total materials required (pounds) \\ 17 & Less Beginning materials inventory \\ 18 & Materials to purchase (pounds) \\ 19 & Materials cost per pound \\ \hline 20 & Cost of direct materials purchases \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline A & B & C & D & E & F \\ \hline Direct Labor Budget Information: & \multicolumn{3}{|c|}{ (see letter d on Budget Instructions) } & See page 778 in Book & \\ \hline Direct labor hours required per unit & & \multicolumn{4}{|c|}{ use for formula below (remember to LOCK cell address) } \\ \hline Direct labor cost per hour & & \multicolumn{4}{|c|}{ use for formula below (remember to LOCK cell address) } \\ \hline & \multicolumn{3}{|c|}{ Zigby Manufacturing } & & \\ \hline & \multicolumn{3}{|c|}{ Direct LaborMaterials Budget } & & \\ \hline & April & May & June & Total for the Quarter & \\ \hline Units to produce & & & & & \\ \hline Direct labor hours required per unit & & & & & \\ \hline \multicolumn{6}{|l|}{ Direct labor hours needed } \\ \hline \multicolumn{6}{|l|}{ Direct labor cost per hour } \\ \hline \multicolumn{6}{|l|}{ Cost of direct labor } \\ \hline . - . | Sales budget | Priduction Budget | Direct Ma & udget Direct & Budget. & & & \\ \hline \end{tabular} The management of Zigby Manufacturing prepared the following balance sheet for March 31
