The management of Zigby Manufacturing prepared the following balance sheet for March 31.

Problem 22-4A (Algo) Manufacturing: Preparation of a complete master budget LO P1, PZ, P3 The management of Zigby Manufacturing prepared the following balance sheet for March 31. a. Sales for March total 22,300 units: Budgeted sales in units follow. April, 22,300; May, 16,300; June, 22,700; and July, 22,300, The product's selling price is $27.00 per unit and its total product cost is $21.00 per unit. b. Raw materials inventory consists solely of direct moterials that cost $20 per pound. Company policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materials inventory is 4,375 pounds. The budgeted June 30 ending raw materials inventory is 5,200 pounds. Each finished unit requires 0.50 pound of direct materials. 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 17,840 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined variable overhead rate is $3.90 per direct labor hour. Depreciation of $31,672 per month is the only fixed factory overhead item. 4. Sales commissions of 10% of sales are paid in the month of the sales. The sales manager's monthly salary is $4,200. 9. Monthly general and administrative expenses include $24,000 for administrative salaries and 0.9% monthly interest on the longterm note payable. h. The company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month e. I Ine predetermined variabie overnead rate is 33.40 per direct labor nour, vepreciation of $37,6/2 per month is the only twied tactory overhead item. 4. Sales commissions of 10\%, of sales are paid in the month of the sales. The sales manager's monthly salary is $4,200. 9. Monthly general and administrative expenses include $24,000 for administrative salaries and 0.9% monthly interest on the longterm note payable. h. The company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of sale). 1. All raw materials purchases are on credit, and accounts payable are solely tied to raw materiais purchases. Raw materiais purchases are fully pald in the next month (none are paid in the month of purchase). j. The minimum ending cash balance for all months is $65,000. If necessary, the company borrows enough cash using a oan to reach the minimum. Loans require an interest poyment of 1\% at each month-end (before any repayment). If the month-end preliminary cash balence exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $22,000 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 bucgeted to be paid in the third calendar quarter. m. Equipment purchases of $100,000 are budgeted for the last day of June. Requiredi Prepare the following budgets for the months of Aprii, May, and June: 1. Sales budget. 2. Production budget. 3. Direct materials budget. 4. Diroct labor budget. 5. Factory overhead budget. 6. Seling expense budget. 7. General and administrative expense budget. 8. Schedule of cesh receipts: 9. Schedule of cash payments for direct materials. 10. Cash budget. 11. Budgeted income statement for entire second quarter (not monthly). 12. Budgeted balance sheet at June 30 . e. I Ine predetermined variabie overnead rate is 33.40 per direct labor nour, vepreciation of $37,6/2 per month is the only twied tactory overhead item. 4. Sales commissions of 10\%, of sales are paid in the month of the sales. The sales manager's monthly salary is $4,200. 9. Monthly general and administrative expenses include $24,000 for administrative salaries and 0.9% monthly interest on the longterm note payable. h. The company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of sale). 1. All raw materials purchases are on credit, and accounts payable are solely tied to raw materiais purchases. Raw materiais purchases are fully pald in the next month (none are paid in the month of purchase). j. The minimum ending cash balance for all months is $65,000. If necessary, the company borrows enough cash using a oan to reach the minimum. Loans require an interest poyment of 1\% at each month-end (before any repayment). If the month-end preliminary cash balence exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $22,000 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 bucgeted to be paid in the third calendar quarter. m. Equipment purchases of $100,000 are budgeted for the last day of June. Requiredi Prepare the following budgets for the months of Aprii, May, and June: 1. Sales budget. 2. Production budget. 3. Direct materials budget. 4. Diroct labor budget. 5. Factory overhead budget. 6. Seling expense budget. 7. General and administrative expense budget. 8. Schedule of cesh receipts: 9. Schedule of cash payments for direct materials. 10. Cash budget. 11. Budgeted income statement for entire second quarter (not monthly). 12. Budgeted balance sheet at June 30