The management at Zigby Manufacturing prepared the following balance sheet for March 31.
The management of Zigby Manufacturing prepared the following balance sheet for March 31 . To prepare a master budget for Aprlt May, and June, management gathers the following information. a. Sales for March total 90,200 units. Budgeted sales in units follow. April, 90,200: May, 85,800, June, 88,000, and July, 90.200 . The product's selling price is $24.00 per unt and its total product cost is $19.85 per un . b. Raw materials inventory consists solely of direct matertals that cost $20 per pound. Company policy calls for a given month's ending materlals inventory to equal 50% of the next month's direct matertals requirements. The March 31 raw materials inventory is 21,670 pounds. The budgeted June 30 ending raw materals inventory is 17,600 pounds. Each finished unit requtres 0.50 pound of direct materlals. c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 finished goods inventory is 72160 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined varlable overhead rate is $270 per direct labor hour. Depreciation of $88,000 per month is the only fixed factory overhead item 1. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $13.200 9. Monthly general and administratve expenses include $52.800 for administrative salanes and 0.9% monthly interest on the longterm note payable h. The company budgets 30% of cales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month followng the sale (no credit sales are collected in the month of sale). L. All raw materials purchases are on credit, and accounts payable are solely ved to raw materlals purchases. Raw materlals purchases aro fully pald in the next month (none are pald in the month of purchase). J. The minimum ending cash balance for all months is $176.000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 1% at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $44,000 are budgeted to be declared and paid in May. 1. No cash payments for income taxes are budgeted in the second calendar quartec Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter. m. Equipment purchases of $440,000 are budgeted for the last day of June. Requlred: 1. Sales budget 2. Production budget 3. Direct materials budget 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 3. Schedule of cash recelpts. 9. Schedule of cash payments for direct materlals. 10. Cash budget. 11. Budgeted income statement for entre second quarter (not monthly). 12. Budgeted balance sheet at June 30 . Complete this question by entering your answers in the tabs below. Sales budget. Production budget. Direct materials budget. Note: Round per unit values to 2 decimal places. Direct labor budget. Note: Round per unit values to 2 decimal places. Factory overhead budget. Note: Round variable overhead rate values to 2 decimal places. Selling expense budget. General and administrative expense budget. Budgeted income statement for entire second quarter (not monthly). Notet Round your final answers to the nearest whole dollat. Budgeted balance sheet at June 30 . Notet-Round your final answers to the nearest whole dollar
