Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The following information applies to the questions displeyed below! The management of Zigby Manufecturing prepered the following estimated belence sheet for March 2015 ZIGBY MANUFACTURING Estimated Balance Sheet March 3t 2015 Assets Cash Accounts recevable Raw moteriais inventory Finished goods inventory 59,000 497500 93.010 433.000 Total current ossets Equipment, gross Accumulated depreciation 1072.510 638.000 (169,000) Equipment, net 469.000 Totoi ossets $ 1541,510 Accounts pave Liabilities Accounts payeble Short-term notes payable and Equity 215.410 31000 Total current liabiiies Long-term note payable $ 246410 530,000 Total labiities Common stock Retsined earnings 776.410 354.000 411000 Total stockholders' equity 765,100 Total liabilties and equity s 1541.510 To prepare a master budget for Apri, May and June of 2015, management gathers the following information a. Soles for March totai 25.000 units. Forecasted sales in units are as follows Apnt, 25,000, May 17000 June, 22.400, July, 25,000 Soles of 259.000 units are forecasted for the entre year The product's selling price is $26.00 per unit and its total product cost is $2165 per unit b. Company policy calls for a given months ending row materieis inventory to equal 50% of the next months materia's requrements The March 31 row matenals inventory & 4650 units, which complies with the policy The expected June 30 ending raw matenais inventory is 5.900 units. Raw materials cost $20 pe unit Each finished unit requires 0.50 units of raw materials c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the ne month's expected unit sales. The March 31 finished goods inventory s 20,000 units. wnicn complies wit