Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me out with this problem!! :) The management of Zigby Manufacturing prepared the following balance sheet for March 31 $ 201,000 12,000 500,000

please help me out with this problem!! :) 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 $ 201,000 12,000 500,000 ZIGBY MANUFACTURING Balance Sheet March 31 Assets Liabilities and Equity Cash $ 40,000 Liabilities Accounts receivable 344,400 Accounts payable Raw materials inventory 98,500 Loan payable Finished goods inventory 325,540 Long-tern note payable Equipment $ 600,000 Equity Less: Accumulated depreciation 150,000 450,000 Common stock Retained earnings Total assets $ 1,258,440 Totat liabilities and equity To prepare a master budget for April, May, and June, management gathers the following information $. 713,000 335,000 210, 440 545,440 $1,258,440 a. Sales for March total 20,500 units. Budgeted sales in units follow: April 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 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 4,925 pounds. The budgeted June 30 ending raw materials 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% of the next month's budgeted unit soles, The March 31 finished goods inventory is 16,400 units. d. Each finished unit requires 0.50 hour of direct laborata 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 fixed factory overhead item t. Soles commissions of 8% of sales are 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 salaries and 0.9% 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 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 1% 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 $10,000 are budgeted to be declared and paid in May I No cash payments for income taxes are budgeted in the second calendar quarter Income tax will be assessed of 35% in the quarter and budgeted to be paid in the third calendar quarter. chures of $100.000 are budgeted for the last day of June Check my 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 4.925 pounds. The budgeted June 30 ending raw materials 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% of the next month's budgeted unit sales. The March 31 finished goods inventory is 16,400 units. d. Each finished unit requires 0.50 hour of direct laborat 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 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 $3.000. 9. Monthly general and administrative expenses include $12,000 for administrative salaries and 0,9% 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 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 1% 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 $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 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 of June 30 Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 to 10 Reg 11 Reg 12 Sales budget. ZIGBY MANUFACTURING Sales Budgets April May 20,500 $ 19,500 $ 24.00 $ 24.00 $ 492,000 $ 468,000 Budgeted sales units Selling price per unit Total budgeted sales $ June 20,000 24.00 480,000 $ $ Red Reg 2 > ley Production budget. ZIGBY MANUFACTURING Production Budget April May 20,500 19,500 Total June 20,000 19,500 20,000 20,500 80% 80% 80% Budgeted sales units Calculation of desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Add: Desired ending inventory Total required units Less: Beginning inventory units Units to produce Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4 Reg 5 Reg 6 Req 7 Req 8 to 10 Reg 11 Reg 12 Raw 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 Reg 4 Req5 Req 6 Reg 7 Reg 8 to 10 Reg 11 Req 12 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April May June Total Units to produce 0 Direct labor hours needed Cost of direct labor ( Req3 Reqs > ces Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 to 10 Reg 11 Req 12 Total Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April May June Direct labor hours needed 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. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 to 10 Reg 11 Reg 12 Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April May Juno Budgeted sales Sales commissions 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 Req 11 Reg 12 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June $ 0 0 Total general and administrative expenses $ 0 ( Req6 Reg 8 to 10 > 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budaet. June May 468,000 $ $ 480,000 ZIBGY MANUFACTURING Schedule of Cash Receipts April Sales $ 492,000 Cash receipts from Cash sales Collections of prior period sales Total cash receipts $ 0 $ 0$ 0 June 182,000 Schedule of Cash Payments for Direct Materials April May Materials purchases $ 198,000 $ 201,500 $ Cash payments for Current period purchases Prior period purchases Total cash payments $ $ 0 $ 0 Cash Budget April May June Beginning cash balance Total cash available Less: Cash payments for Cash Budget April May June Beginning cash balance Total cash available Less: Cash payments for: s Total cash payments 0 0 0 Preliminary cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month $ 0 Budgeted income statement for entire second quarter (not monthly). (Round your final answers to the nearest w ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses 0 0 $ 0 Budgeted balance sheet at June 30. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Total current assets s 0 Equipment, net Total assets Liabilities and Equity Liabilities Bank loan payable 0 Total current liabilities Equity Total Equity Total Liabilities and Equity

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

Advanced Financial Accounting

Authors: Theodore Christensen, David Cottrell, Cassy Budd

12th Edition

1260165116, 9781260165111

More Books

Students also viewed these Accounting questions