thank you i just need help with number 10 I will give a outstanding review
1) For Zigby's sales, complete the following: a) Complete the table below to determine the net sales amount for the special order. ZIGBY MANUFACTURING Special Order Number of Units (equals May's units from connect) Sales Price per unit (from connect) Gross Sales Revenue (multiply) Less Discount (3% of Gross Sales Revenue) Net Sales for Special Order 21,600 $25 $540,000 $16,200 $523,800 b) Complete the Revised Sales Budget below by including the Net Sales for Special Order in the table below. Revised Net Sales ZIGBY MANUFACTURING Sales Budget April, May, and June 2019 Original Budgeted Net Sales for Special Sales Dollars Order 520,000 540,000 523,800 522,500 1,582,500 April 2019 May 2019 June 2019 Totals for the 2nd quarter 520,000 1,063,800 522,500 2,106,300 June Total 16,640 ZIGBY MANUFACTURING Change to smooth Production Budget April, May, and June 2019 April May Budgeted ending inventory (calculate for 25,280 16,720 April, row 3 of connect for May and June) Budgeted units sales for month 20,800 43,200 Required units of available production 46,080 59,920 Beginning inventory (units) 16,640 25,280 Units to be produced during the month 29,440 34,640 20,900 37,540 16,720 20,820 84,900 ZIGBY MANUFACTURING Revised Raw Materials Budget April May June Total Production budget (units) 21,440 21,040 20,820 Materials requirements per unit 0.50 0.50 0.50 (unchanged from connect) Materials needed for production 10,720 10,520 10,410 Budgeted ending inventory 3,156 3,123 4,200 Total materials requirements (units) 13,876 13,643 14,610 Beginning inventory 5,360 3,156 3,123 Materials to be purchased 8,516 10,487 11,487 30,490 Material price per unit $20.00 $20.00 $20.00 $20.00 Raw Material purchases before $170,320.00 $209,740.00 $229,740.00 $609,800.00 Discount Discount (5% of purchases exceeding $487 10,000 lbs) $1,487.00 $1,974.00 Budgeted raw material purchases $170,320.00 $209,253.00 $228,253.00 $607,826.00 4) To maintain moral among their employees, Zigby has agreed to pay employees a wage premium of $3 an hour for excess overtime. Excess overtime has been defined as any hours in excess of 13,000 hours in a month. The Direct Labor Budget will need to be updated for the changes to the production budget and the wage premium added for each month. This table is completed similarly to the budget table in connect. Budgeted production (units) Labor requirements per unit (hours) Total labor hours needed Direct labor rate (per hour) Base direct labor cost Wage premium (3xhours over 13,000) Total Budgeted direct labor costs ZIGBY MANUFACTURING Revised Direct Labor Budget April May 29,440 36,640 .50 .50 14,720 17,320 $17 $17 250,240 294,440 5,160 12.960 255,400L 307,400 June 20,820 .50 10,410 $17 176,970 Total 84,900 0.50 42,450 $17 721,650 18,120 739,770 176,970 5) Factory Overhead Budget will need to be updated for the production and labor requirement changes. This table is completed similarly to the budget table in connect. Labor hours needed Variable factory overhead rate Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead ZIGBY MANUFACTURING Revised Factory Overhead Budget April May 14,720 17,320 13,000 13,000 1,720 4,320 $3 $3 5,160 12,960 June 10,410 13,000 2,590 Total 42,450 39.000 3,450 $3 18,120 June 522,500.00 ZIGBY MANUFACTURING Revised Cash Receipts from Customers April May Current month's cash sales (from connect) 528,000.00 540,000.00 Current month's credit sales collected (20% of current months credit sales) 156,000.00 162,00.00 Previous month's credit sales collected 72,800.00 75,600.00 (80% of previous months sales) Special order collected in June 291,200.00 Total cash receipts 748,800.00 1,068,800 156,750.00 73,150.00 302,400.00 1,054,800.00 7) Additionally, to conserve cash, the company has decided to delay payment for their raw material purchases. The company previously paid 100% of their raw material purchases (revised budget in 3) in the month after the purchase was made. Starting with March purchases (Accounts Payable balance at 3/31), Zigby plans to only pay 80% of their purchases in the first month after the purchases are made. The remaining 20% will be paid in the second month after purchase (Example: 80% of accounts payable on March 31 will be paid in April and the remaining 20% will be paid in May. April sales will be paid in May and June, etc.) Remember: Purchases budgeted in 3 increased accounts payable (credit) while estimated payments here decreases accounts payable (debit). June 30 Accounts Payable ZIGBY MANUFACTURING Estimated Payments for Raw Material Purchases April May June March 31 Accounts Payable 169,040 42,260 April purchases 136,256 34,064 May Purchases 167,402 June Purchases Total cash payments 169,040 178,516 201,466 41,851 228,253 ZIGBY MANUFACTURING Revised Cash Budget April 42,000 520,000 562,000 May 59.790 526,000 585,790 June 87,020 534,750 621,770 Beginning cash balance Cash receipts from customers Total cash available Cash payments for: Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Dividends Loan interest Long-term note interest Purchases of equipment Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 211,300 182.240 32,160 41,600 3,200 14,000 212,400 178,840 31,560 43,200 3,200 14,000 12,000 209,300 176,970 31,230 41,800 3,200 14,000 140 3,570 3,570 498.770 87,020 488,210 73,790 (14,000) 59,700 3,570 132,000 612,070 9,700 32,300 42,000 87,020 May Revised Loan balance: ST note payable April Loan balance - Beginning of month 14,000 Additional loan (loan repayment) (14,000) Loan balance - End of month 0 0 June 0 32,300 32,300 0 ZIGBY MANUFACTURING Weighted Average Cost per Raw Material unit Costs: March 31 Raw Material Balance (connect) Raw Material purchases (total from 3 net of discount) Total Costs available for use in production (a) Units: Units in 3/31 Raw Material inventory (connect) Units purchased during quarter (from 3) Total units available for production (b) Weighted-Average Cost per unit (a) (b) show 2 decimals 107,200 607,826 $715,026 5,360 30,490 35,850 $19.94 b) Use the weighted average cost per unit to calculate the June 30 raw material inventory balance and the cost of direct material used in production. Use the notes below the table for assistance ZIGBY MANUFACTURING Raw Material Inventory Allocation of Costs Inventory at Used in 6/30 Production Units 4,200 10,410 Weighted average cost per unit $19.94 $19.94 Allocated costs $83,748 $207,575.40 Total Accounted for 14,610 $19.94 $291,323.40 10) Connect gives a total product cost" per unit that is used to calculate the ending inventory value and cost of goods sold. This per unit cost includes fixed overhead costs assuming the quarter's original production and sales levels. This average will change because of the one-time sale. Zigby Manufacturing uses weighted average costing for its inventory. Because Zigby does not have any Work-In-Process inventory, we can assume that all production costs flow to finished goods and then to cost of goods sold. a) Follow the directions below the table to calculate the revised weighted average cost per unit. + ZIGBY MANUFACTURING Weighted Average Cost per Finished Goods Inventory Costs: March 31 Finished Goods Inventory (connect) Raw Material used in production (calculated in 9) Budgeted Direct Labor costs (calculated in 4 including wage premium) Budgeted Overhead Costs (calculated in 5.Both variable and fixed) Total Costs of Finished Goods available for use sale (a) Units: Units in 3/31 Finished Goods Inventory connect) Units produced during quarter (from 2) Total units available for sale (b) Weighted-Average Cost per unit (a) (b) show 2 decimals 349,440 715,026 739,770 18,120 b) Use the weighted average cost per unit to allocate costs between 6/30 finished goods inventory and COGS. ZIGBY MANUFACTURING Finished Goods Inventory Allocation of Costs FG Inventory at Sold 6/30 Units Weighted average cost per unit Allocated costs Total Accounted for ZIGBY MANUFACTURING Estimated Balance 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 Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 42,000 364,000 107,200 349,440 862,640 604,000 (152,000) 452,000 $1,314,640 $ 211,300 14,000 225,300 510,000 735,300 337,000 242,340 579,340 $1,314,640 a. Sales for March total 20,800 units. Forecasted sales in units are as follows: April, 20,800; May, 21,600; June, 20,900; and July, 20,800. Sales of 242,000 units are forecasted for the entire year. The product's selling price is $25.00 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 5,360 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,200 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 16,640 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $17 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.00 per direct labor hour. Depreciation of $21,100 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 8% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,200. g. Monthly general and administrative expenses include $14,000 administrative salaries and 0.7% 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). 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 $42,000. 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 $12,000 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 $132,000 are budgeted for the last day of June. 1) For Zigby's sales, complete the following: a) Complete the table below to determine the net sales amount for the special order. ZIGBY MANUFACTURING Special Order Number of Units (equals May's units from connect) Sales Price per unit (from connect) Gross Sales Revenue (multiply) Less Discount (3% of Gross Sales Revenue) Net Sales for Special Order 21,600 $25 $540,000 $16,200 $523,800 b) Complete the Revised Sales Budget below by including the Net Sales for Special Order in the table below. Revised Net Sales ZIGBY MANUFACTURING Sales Budget April, May, and June 2019 Original Budgeted Net Sales for Special Sales Dollars Order 520,000 540,000 523,800 522,500 1,582,500 April 2019 May 2019 June 2019 Totals for the 2nd quarter 520,000 1,063,800 522,500 2,106,300 June Total 16,640 ZIGBY MANUFACTURING Change to smooth Production Budget April, May, and June 2019 April May Budgeted ending inventory (calculate for 25,280 16,720 April, row 3 of connect for May and June) Budgeted units sales for month 20,800 43,200 Required units of available production 46,080 59,920 Beginning inventory (units) 16,640 25,280 Units to be produced during the month 29,440 34,640 20,900 37,540 16,720 20,820 84,900 ZIGBY MANUFACTURING Revised Raw Materials Budget April May June Total Production budget (units) 21,440 21,040 20,820 Materials requirements per unit 0.50 0.50 0.50 (unchanged from connect) Materials needed for production 10,720 10,520 10,410 Budgeted ending inventory 3,156 3,123 4,200 Total materials requirements (units) 13,876 13,643 14,610 Beginning inventory 5,360 3,156 3,123 Materials to be purchased 8,516 10,487 11,487 30,490 Material price per unit $20.00 $20.00 $20.00 $20.00 Raw Material purchases before $170,320.00 $209,740.00 $229,740.00 $609,800.00 Discount Discount (5% of purchases exceeding $487 10,000 lbs) $1,487.00 $1,974.00 Budgeted raw material purchases $170,320.00 $209,253.00 $228,253.00 $607,826.00 4) To maintain moral among their employees, Zigby has agreed to pay employees a wage premium of $3 an hour for excess overtime. Excess overtime has been defined as any hours in excess of 13,000 hours in a month. The Direct Labor Budget will need to be updated for the changes to the production budget and the wage premium added for each month. This table is completed similarly to the budget table in connect. Budgeted production (units) Labor requirements per unit (hours) Total labor hours needed Direct labor rate (per hour) Base direct labor cost Wage premium (3xhours over 13,000) Total Budgeted direct labor costs ZIGBY MANUFACTURING Revised Direct Labor Budget April May 29,440 36,640 .50 .50 14,720 17,320 $17 $17 250,240 294,440 5,160 12.960 255,400L 307,400 June 20,820 .50 10,410 $17 176,970 Total 84,900 0.50 42,450 $17 721,650 18,120 739,770 176,970 5) Factory Overhead Budget will need to be updated for the production and labor requirement changes. This table is completed similarly to the budget table in connect. Labor hours needed Variable factory overhead rate Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead ZIGBY MANUFACTURING Revised Factory Overhead Budget April May 14,720 17,320 13,000 13,000 1,720 4,320 $3 $3 5,160 12,960 June 10,410 13,000 2,590 Total 42,450 39.000 3,450 $3 18,120 June 522,500.00 ZIGBY MANUFACTURING Revised Cash Receipts from Customers April May Current month's cash sales (from connect) 528,000.00 540,000.00 Current month's credit sales collected (20% of current months credit sales) 156,000.00 162,00.00 Previous month's credit sales collected 72,800.00 75,600.00 (80% of previous months sales) Special order collected in June 291,200.00 Total cash receipts 748,800.00 1,068,800 156,750.00 73,150.00 302,400.00 1,054,800.00 7) Additionally, to conserve cash, the company has decided to delay payment for their raw material purchases. The company previously paid 100% of their raw material purchases (revised budget in 3) in the month after the purchase was made. Starting with March purchases (Accounts Payable balance at 3/31), Zigby plans to only pay 80% of their purchases in the first month after the purchases are made. The remaining 20% will be paid in the second month after purchase (Example: 80% of accounts payable on March 31 will be paid in April and the remaining 20% will be paid in May. April sales will be paid in May and June, etc.) Remember: Purchases budgeted in 3 increased accounts payable (credit) while estimated payments here decreases accounts payable (debit). June 30 Accounts Payable ZIGBY MANUFACTURING Estimated Payments for Raw Material Purchases April May June March 31 Accounts Payable 169,040 42,260 April purchases 136,256 34,064 May Purchases 167,402 June Purchases Total cash payments 169,040 178,516 201,466 41,851 228,253 ZIGBY MANUFACTURING Revised Cash Budget April 42,000 520,000 562,000 May 59.790 526,000 585,790 June 87,020 534,750 621,770 Beginning cash balance Cash receipts from customers Total cash available Cash payments for: Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Dividends Loan interest Long-term note interest Purchases of equipment Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 211,300 182.240 32,160 41,600 3,200 14,000 212,400 178,840 31,560 43,200 3,200 14,000 12,000 209,300 176,970 31,230 41,800 3,200 14,000 140 3,570 3,570 498.770 87,020 488,210 73,790 (14,000) 59,700 3,570 132,000 612,070 9,700 32,300 42,000 87,020 May Revised Loan balance: ST note payable April Loan balance - Beginning of month 14,000 Additional loan (loan repayment) (14,000) Loan balance - End of month 0 0 June 0 32,300 32,300 0 ZIGBY MANUFACTURING Weighted Average Cost per Raw Material unit Costs: March 31 Raw Material Balance (connect) Raw Material purchases (total from 3 net of discount) Total Costs available for use in production (a) Units: Units in 3/31 Raw Material inventory (connect) Units purchased during quarter (from 3) Total units available for production (b) Weighted-Average Cost per unit (a) (b) show 2 decimals 107,200 607,826 $715,026 5,360 30,490 35,850 $19.94 b) Use the weighted average cost per unit to calculate the June 30 raw material inventory balance and the cost of direct material used in production. Use the notes below the table for assistance ZIGBY MANUFACTURING Raw Material Inventory Allocation of Costs Inventory at Used in 6/30 Production Units 4,200 10,410 Weighted average cost per unit $19.94 $19.94 Allocated costs $83,748 $207,575.40 Total Accounted for 14,610 $19.94 $291,323.40 10) Connect gives a total product cost" per unit that is used to calculate the ending inventory value and cost of goods sold. This per unit cost includes fixed overhead costs assuming the quarter's original production and sales levels. This average will change because of the one-time sale. Zigby Manufacturing uses weighted average costing for its inventory. Because Zigby does not have any Work-In-Process inventory, we can assume that all production costs flow to finished goods and then to cost of goods sold. a) Follow the directions below the table to calculate the revised weighted average cost per unit. + ZIGBY MANUFACTURING Weighted Average Cost per Finished Goods Inventory Costs: March 31 Finished Goods Inventory (connect) Raw Material used in production (calculated in 9) Budgeted Direct Labor costs (calculated in 4 including wage premium) Budgeted Overhead Costs (calculated in 5.Both variable and fixed) Total Costs of Finished Goods available for use sale (a) Units: Units in 3/31 Finished Goods Inventory connect) Units produced during quarter (from 2) Total units available for sale (b) Weighted-Average Cost per unit (a) (b) show 2 decimals 349,440 715,026 739,770 18,120 b) Use the weighted average cost per unit to allocate costs between 6/30 finished goods inventory and COGS. ZIGBY MANUFACTURING Finished Goods Inventory Allocation of Costs FG Inventory at Sold 6/30 Units Weighted average cost per unit Allocated costs Total Accounted for ZIGBY MANUFACTURING Estimated Balance 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 Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 42,000 364,000 107,200 349,440 862,640 604,000 (152,000) 452,000 $1,314,640 $ 211,300 14,000 225,300 510,000 735,300 337,000 242,340 579,340 $1,314,640 a. Sales for March total 20,800 units. Forecasted sales in units are as follows: April, 20,800; May, 21,600; June, 20,900; and July, 20,800. Sales of 242,000 units are forecasted for the entire year. The product's selling price is $25.00 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 5,360 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,200 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 16,640 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $17 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.00 per direct labor hour. Depreciation of $21,100 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 8% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,200. g. Monthly general and administrative expenses include $14,000 administrative salaries and 0.7% 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). 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 $42,000. 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 $12,000 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 $132,000 are budgeted for the last day of June
