Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Talance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Connon stock Retained earnings Total stockholders' equity Total liabilities and equity $ 56,000 341,250 84,200 337.680 819,130 632.000 (166,000) 466.000 $1,285, 130 ces $ 189,800 28.000 217,800 516.000 733,800 351,000 200.330 551,330 $1,285, 130 To prepare a master budget for April, May, and June of 2019, management gathers the following information a. Sales for March total 21.000 units, Forecasted sales in units are as follows: April 21,000, May, 15,800, June, 21.600, and July Sales of 256,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product $20.10 per unit b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirer The March 1r materiale inventori 410 nits which mac with the new The avnarta luna 20 andinn raw mata 970 W X 25 MacBook Pro G Search or type URL Check my To prepare a master budget for April, May, and June of 2019, management gathers the following information a. Sales for March total 21.000 units. Forecasted sales in units are as follows: April, 21000, May 15,800; June, 21,600; and July, 214 Sales of 256,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost $20.10 per unit b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirement The March 31 raw materials Inventory is 4,210 units, which complies with the policy. The expected June 30 ending raw materials Inventory is 5,600 units. Raw materials cost $20 per 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 next month's expected unit sales The March 31 finished goods inventory is 16,800 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct laborat a rate of $12 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.30 per direct labor hour. Depreciation of $37.960 per month is treated as fixed factory overhead. . Sales representatives commissions are 7% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,600 9. Monthly general and administrative expenses include $28,000 administrative salaries and 0.5% monthly interest on the long-term note payable h. The company expects 35% of sales to be for cash and the remaining 65% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). 1. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases are fully paid in the next month. J. The minimum ending cash balance for all months is $56,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance. k. Dividends of $26.000 are to be declared and paid in May. 1. No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 40% in the quarter and paid in the third calendar quarter. m. Equipment purchases of $146,000 are budgeted for the last day of June. Required: Prepare the following budgets and other financial information as required. All budgets and other financial Information should be prepared for the second calendar quarter, except as otherwise noted below. (Round calculations up to the nearest whole dollar, except for the amount of cash sales, which should be rounded down to the nearest whole dollar.) 978 W P 25 ... MacBook Pro G Search or type URL Check my w 2 Calculation of Cash receipts from customers April May 50 Total budgeted sales Cash sales Sales on credit 35% 65% 030727 Total cash receipts from customers April May June Current month's cash sales Collections of receivables Total cash receipts ZIGBY MANUFACTURING Cash Budget April, May, and June 2019 April May June Beginning cash balance Total cash available Cash payments for Me Gra Hell 970 W X 25 MacBook Pro G Search or type URL Check my To prepare a master budget for April, May, and June of 2019, management gathers the following information a. Sales for March total 21.000 units. Forecasted sales in units are as follows: April, 21000, May 15,800; June, 21,600; and July, 214 Sales of 256,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost $20.10 per unit b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirement The March 31 raw materials Inventory is 4,210 units, which complies with the policy. The expected June 30 ending raw materials Inventory is 5,600 units. Raw materials cost $20 per 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 next month's expected unit sales The March 31 finished goods inventory is 16,800 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct laborat a rate of $12 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.30 per direct labor hour. Depreciation of $37.960 per month is treated as fixed factory overhead. . Sales representatives commissions are 7% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,600 9. Monthly general and administrative expenses include $28,000 administrative salaries and 0.5% monthly interest on the long-term note payable h. The company expects 35% of sales to be for cash and the remaining 65% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). 1. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases are fully paid in the next month. J. The minimum ending cash balance for all months is $56,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance. k. Dividends of $26.000 are to be declared and paid in May. 1. No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 40% in the quarter and paid in the third calendar quarter. m. Equipment purchases of $146,000 are budgeted for the last day of June. Required: Prepare the following budgets and other financial information as required. All budgets and other financial Information should be prepared for the second calendar quarter, except as otherwise noted below. (Round calculations up to the nearest whole dollar, except for the amount of cash sales, which should be rounded down to the nearest whole dollar.) 978 W P 25 ... MacBook Pro G Search or type URL Check my w 2 Calculation of Cash receipts from customers April May 50 Total budgeted sales Cash sales Sales on credit 35% 65% 030727 Total cash receipts from customers April May June Current month's cash sales Collections of receivables Total cash receipts ZIGBY MANUFACTURING Cash Budget April, May, and June 2019 April May June Beginning cash balance Total cash available Cash payments for Me Gra Hell