Problem 20-4A (Algo) Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following balance sheet for March 31. Cash Accounts receivable Assets ZIGBY MANUFACTURING Balance Sheet March 31 $ 200,000 Liabilities $ 3,517,000 Liabilities and Equity 1,722,000 Accounts payable Raw materials inventory Finished goods inventory 492,500 1,627,700 Loan payable Long-term note payable $ 1,005,000 12,000 2,500,000 Equipment $ 3,000,000 Equity Less: Accumulated depreciation 750,000 2,250,000 Common stock 1,675,000 Retained earnings Total assets $6,292,200 Total liabilities and equity 1,100,200 2,775,200 $ 6,292,200 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. Required: 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. Req 1 Req 21 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12- Sales budget. ZIGBY MANUFACTURING Sales Budgets April May June Budgeted sales units Selling price per unit Total budgeted sales Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Production budget. 8:16 Budgeted sales units - Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Units to produce ZIGBY MANUFACTURING Production Budget April May June Total 97,500 100,000 102,500 80% 80% 80% ehensive Question Complete this question by entering your answers in the tabs below. Saved Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Direct materials budget. Note: Round per unit values to 2 decimal places. Units to produce ZIGBY MANUFACTURING Direct Materials Budget April May June 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. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Direct labor budget. Note: Round per unit values to 2 decimal places. Units to produce Direct labor hours needed Cost of direct labor ZIGBY MANUFACTURING Direct Labor Budget April May June Total Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6. Req 7 Req 8 to 10 Req 11 Req 12 Factory overhead budget. Note: Round variable overhead rate values to 2 decimal places. Direct labor hours needed Vanable overhead rate per direct labor hour Budgeted variable overhead ZIGBY MANUFACTURING Factory Overhead Budget April May June Total Budgeted foxed overhead Budgeted total factory overhead Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Selling expense budget. Budgeted sales: Sales commissions ZIGBY MANUFACTURING Selling Expense Budget April May June < Req 6 Req 7 > 12. Budgeted balance sheet at June 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11:1 Req 12 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Budgeted income statement for entire second quarter (not monthly). Note: Round your final answers to the nearest whole dollar. ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses Total assets Liabilities Equity Total Liabilities and Equity ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Liabilities and Equity