Problem 22-4A Manufacturing: Preparation of a completo master budget P1 P2 P3 The management of Zipby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGET MANUFACTURING Estimated Balance Sheet March 31, 2019 Ants Canh Liabities and Equity Accounts payable Shortcodes payable Total current sites Long term rote payable $40.000 342.243 90.500 Accounts receive $ 200.500 12.000 212.500 500,000 212500 305.000 200 Finished goods inventory Total current Equipment.... Accurated depreciation 80628 600.000 (150,000 Common stock Retained earrings Total stockhout Totales and equity $1,250.00 $1.356 Toalets To prepare a master budget for April, May, and June of 2019, management gathers the following information a Sales for March total 20.500 units Forecasted sales in units are as follows: April, 20.500; May 19,500, June, 20,000; and July, 20,500. Sales of 240,000 units are forecasted for the entire year. The product's selling price is $21.5 per unit and its total product cost is $1985 per unit b. Company policy calls for a given month's ending raw materials inventory to qual 50% of the next month's materials requirements. The March 31 raw materials inventory is 4,925 units, which complies with the policy. The expected June 10 ending raw materials inventory is 4.000 units Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials c. Company policy calls for a given mouth's ending finished goods inventory to equal 80% of the next month's expected unit sales. The March 31 finished goods inventory is 16,400 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct laborat a rate of 15 per hour e. Overhead is allocated based on direct labor hours. The prodetermined variable overhcad rate is $2.70 per direct labor hour. Depreciation of $20,000 per month is treated as fixed factory overhead 1. Sales representatives commissions are 8% of sales and 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 administrative salaries and 0.9% monthly interest on the long-term note payable. h. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale) L. 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. 1. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows cnough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of l% 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 S10.000 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 35% in the quarter and paid in the third calendar quarter 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 1. Sales budget 2. Production budget Check this to produce Aort, 10.700. May, 19.000 3. Raw materials budget 131 Cost of raw materials purchases Art, 198.000 4. Direct labor budget. 5. Factory overhead budget. (5) Tove head coil May $46.605 6. Selling expense budget 7. General and administrative expense budget 8. Cashbudget dashbac Art 3346 May, 124,16 9. Badgeted income statement for the entire second quarter inot for each month separately) 10. Hudgeted balance sheet of the end of the second calendar quarter. (10) Bud total al June 30, 51200440