Return to a. Sales for March total 25,000 units. Forecasted sales in units are as follows. April, 25,000; May, 17,000; June, 22,400; and July. 25,000. Sales of 259,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $21.65 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 4,650 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,900 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 20,000 units, which complies with the policy. d. Each finished unit requires 050 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 $4.60 per direct labor hour. Depreciation of $39,710 per month is treated as fixed factory overhead. t. Sales representatives' commissions are 5% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,900. g. Monthly general and administrative expenses include $34,000 administrative salaries and 0.8% 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 $98,000. 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 $29,000 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 $149,000 are budgeted for the last day of June. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Calculation of Cash receipts from customers: April May June Cash budget. (Negative balances and Loan repayment arnounts (if any) should be indicated with minus sign.) Calculation of Cash receipts from customers: April May June Total budgeted sales 59,000 8 Cash sales 25% Sales on credit 75% Total cash receipts from customers April May June Current month's cash sales Collections of recelvables Total cash receipts ZIGBY MANUFACTURING Cash Budget April, May, and June 2019 April May June Beginning cash balance 59,000 $ 204,360 299 584 Cash receipts from customers 650.000 598,000 477 100 Sales commissions 32,500 22,100 29,120 Sales salaries 4,900 4,900 4,900 Loan interest 310 Dividends 29,000 Purchases of equipment 149,000 Long-term note interest 4,240 4,240 4,240 Total cash payments 473,640 502,776 690,164 Preliminary cash balance Additional loan (loan repayment) (31,000) 11,480 8 (31,000) 11,480 Ending cash balance $ 204,360 22,960 Loan balance April May June Loan balance - Beginning of month S(31,000) O Additional loan (loan repayment) (31,000) 11,480 Loan balance - End of month s(62,000) %24 11,480 < Required 7 Required 9 > ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2019 Assets Cash 98,000 Accounts receivable 436,800 Bank loan payable 118,000 Income taxes payable 433,000 Total current assets $1,085,800 Equipment 638,000 Merchandise Inventory 149,000 X Equipment, net 489,000 Total assets $1,574,800 Liabilities and Equity Liabilities Accounts payable $240,400 Bank loan payable 11,480 Income taxes payable 26,767 8 ILUIIIC LaAGa pay duic Total current assets $1,085,800 Equipment $ 638,000 Merchandise Inventory 149,000 X Equipment, net 489,000 Total assets $1,574,800 Liabilities and Equity Liabilities Accounts payable $240,400 Bank loan payable 11,480 Income taxes payable 26,767 8 Total current liabilities 278,647 Long-term note payable 530,000 Stockholders' Equity Common stock 354,000 O Retained earnings 422,114 Total Stockholders' Equity 776.114 Total Liabilities and Equity $1.584.761 Reauiced.o ZIGBY MANUFACTURING Production Budget April, May, and June 2019 April May June Total Next month's budgeted sales (units) 17,000 22,400 25,000 Ratio of inventory to future sales 80% 80% 80% Budgeted ending inventory (units) Budgeted units sales for month Required units of avallable production 13,600 17,920 20,000 38,600 8 34,920 O 42,400 O 52,200 52,840 62,400 Beginning inventory (units) Units to be produced (20,000) (13,600) (17,920) 18,600 21,320 24,480 64,400