Required information

[The following information applies to the questions displayed below.]

The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 2013:

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2013
Assets
Cash	$	48,000
Accounts receivable		438,750
Raw materials inventory		87,900
Finished goods inventory		383,760
Total current assets		958,410
Equipment, gross		616,000
Accumulated depreciation		(158,000)
Equipment, net		458,000
Total assets	$	1,416,410
Liabilities and Equity
Accounts payable		187,200
Short-term notes payable		20,000
Total current liabilities	$	207,200
Long-term note payable		508,000
Total liabilities		715,200
Common stock		343,000
Retained earnings		358,210
Total stockholders equity		701,210
Total liabilities and equity	$	1,416,410

To prepare a master budget for April, May, and June of 2013, management gathers the following information.

a.	Sales for March total 19,500 units. Forecasted sales in units are as follows: April, 19,500; May, 17,100; June, 21,300; July, 19,500. Sales of 248,000 units are forecasted for the entire year. The products selling price is $30.00 per unit and its total product cost is $24.60 per unit.
b.	Company policy calls for a given months ending raw materials inventory to equal 50% of the next months materials requirements. The March 31 raw materials inventory is 4,395 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,800 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials.
c.	Company policy calls for a given months ending finished goods inventory to equal 80% of the next months expected unit sales. The March 31 finished goods inventory is 15,600 units, which complies with the policy
d.	Each finished unit requires 0.50 hours of direct labor at a rate of $23 per hour.
e.	Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.40 per direct labor hour. Depreciation of $27,020 per month is treated as fixed factory overhead.
f.	Sales representatives commissions are 7% of sales and are paid in the month of the sales. The sales managers monthly salary is $3,800 per month.
g.	Monthly general and administrative expenses include $20,000 administrative salaries and 0.5% 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 is collected in the month of the sale).
i.	All raw materials purchases are on credit, and no payables arise from any other transactions. One months raw materials purchases are fully paid in the next month.
J.	The minimum ending cash balance for all months is $48,000. 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 $18,000 are to be declared and paid in May.

l.	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 $138,000 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:

1. Sales budgets. (Round budgeted unit price answer to 2 decimal places.) ZIGBY MANUFACTURING Sales Budget April, May, and June 2013 Budgeted Unit Budgeted Unit Budgeted Total Sales Price Dollars April 2013 May 2013 June 2013 Totals for the quarter 2. Production budget. ZIGBY MANUFACTURING Production Budget April, May, and June 2013 April May 17,100 21,300 Next month's budgeted sales (units) Ratio of inventory to future sales June 19,500 80% 80% 80% Required units of available production Units to be produced Raw materials budget. (Round Materials requirements per unit answers to 2 decimal places.) ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2013 April May June Production budget (units) Materials needed for production Total materials requirements (units) Materials to be purchased Material price per unit Total cost of direct material purchases 4. Direct labor budget. (Round Labor requirements per unit answers to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2013 April May June Total Budgeted production (units) Total labor hours needed Labor dollars 5. Factory overhead budget. (Round Variable factory overhead rate answers to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2013 April May June Total Labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead 6. Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2013 April May June Budgeted sales Sales commissions 7. General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2013 April May June Total expenses 8. Cash budget. (Leave no cells blank - be certain to enter "O" wherever required.) Calculation of Cash receipts from customers: April May June Total budgeted sales Cash sales 25% Sales on credit 75% Total cash receipts from customers April May June Current month's cash sales Collections of receivables ZIGBY MANUFACTURING Cash Budget April, May, and June 2013 April May June Beginning cash balance Total cash available Cash disbursements: Total cash disbursements Preliminary cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 10. Budgeted balance sheet. ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2013 Assets Liabilities and Equity Liabilities