Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 || Required 7 Required 9 Required 10 Sales budget. (Round Budgeted unit price to 2 decimal places.) ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 Budgeted Budgeted Budgeted Unit Sales Unit Price Sales Dollars April 2017 22,300 $ 26.00 $ 579,800 May 2017 16,300 26.00 423,800 June 2017 22,700 26.00 590,200 Totals for the second quarter 61,300 $ 1,593,800 Required 1 Required 2 > Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Required 1 Required 2 ------- Production budget. Total 16,300 Next month's budgeted sales (units) Ratio of inventory to future sales Budgeted ending inventory (units) Budgeted units sales for month Required units of available production Beginning inventory (units) Units to be produced ZIGBY MANUFACTURING Production Budget April, May, and June 2017 April May 22,700 80% 80% 13,040 18,160 22,300 16,300 35,340 34,460 (17,840) (13,040)| 17,500 21,420 June 22,300 80% 17,840 22,700 40,540 (18,160) 22,380 61,300 HA To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 22,300 units. Forecasted sales in units are as follows: April, 22,300; May, 16,300; June, 22,700; and July, 22,300. Sales of 252,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $21.00 per unit. b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. The March 31 raw materials inventory is 4,375 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,200 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 17,840 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $15 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.90 per direct labor hour. Depreciation of $31,670 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,200. g. Monthly general and administrative expenses include $24,000 administrative salaries and 0.9% monthly interest on the long-term note payable. h. The company expects 25% of sales to be for cash and the remaining 75% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). i. 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 $62,000. 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 $22,000 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 $142,000 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 b prepared for the second calendar quarter, except as otherwise noted below. (Round calculations up to the nearest whole doll except for the amount of cash sales, which should be rounded down to the nearest whole dollar.): 1. Sales budget. 2. Production budget. 3. Raw materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Cash budget. 9. Budgeted income statement for the entire second quarter (not for each month separately). 10. Budgeted balance sheet. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Raw materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 April May Production budget (units) 17,500 21,420 Materials requirements per unit 0.50 0.50 Materials needed for production 8,750 10,710 Budgeted ending inventory [ Total materials requirements (units) Beginning inventory Materials to be purchased I Material price per unit Budgeted raw material purchases L L L June 22,380 0.50 11,190 T | L LLLLLLLLLLLLLLLLL Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May June Total Budgeted production (units) Total labor hours needed Budgeted direct labor cost Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Factory overhead budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 April May June Total Labor hours needed L L L T | Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead