The management of Zigby Manufacturing prepared the following balance sheet for March 31. ZIGBY MANUFACTURING Balance Sheet March 31 Assets Liabilities and Equity Cash $ 42,000 Liabilities Accounts receivable 378,560 Raw materials inventory Accounts payable $211,300 107,200 Loan payable Finished goods inventory 349,440 Long-term note payable 14,000 500,000 $ 725,300 Equipment $ 604,000 Equity Less: Accumulated depreciation 152,000 452,000 Common stock Retained earnings 337,000 266,900 603,900 Total assets $ 1,329,2001 $ 1,329,200 Total liabilities and equity To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 20,800 units. Budgeted sales in units follow: April, 20,800; May, 21,600; June, 20,900; and July, 20,800. The product's selling price is $26.00 per unit and its total product cost is $21.00 per unit. b. Raw materials inventory consists solely of direct materials 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 5,360 pounds. The budgeted June 30 ending raw materials inventory is 4,200 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 16,640 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $17 per hour. e. The predetermined variable overhead rate is $3.00 per direct labor hour Depreciation of $21,100 per month is the only fixed factory overhead item. f. Sales commissions of 8% of sales 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 for administrative salaries and 0.7% monthly interest on the long-term 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). i. All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase). j. The minimum ending cash balance for all months is $42,000. 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 $12,000 are budgeted to be declared and paid in May. 1. No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter. m. Equipment purchases of $100,000 are budgeted for the last day of June. 12. Budgeted balance sheet at June 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Reg S Red 6 Req 7 Req 8 to 10 Req 11 Req 12 Production budget. Budgeted sales units. Next penod budgeted sales and Rabio of inventory to future sales Desired ending inventory units Total required units Units to produce ZIGBY MANUFACTURING Production Budget April May June Total 21,600 20,900 20.800 80% 80% 80% Req 1 Req 2 Req 3. Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Direct materials budget. (Round per unit values to 2 decimal places.) Me ZIGBY MANUFACTURING Direct Materials Budget April May June Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req6 Req 7 Req 8 to 10 Req 11 Req 12 Direct labor budget. (Round per unit values to 2 decimal places.) Units to produce Direct labor hours needed Cost of direct tabor ZIGBY MANUFACTURING Direct Labor Budget April May June Total References 12. Budgeted balance sheet at June 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Red 4 Req 5 Req 6 Req 7 Req 8 to 10 Red 11 Req 12 Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) Direct labor hours needed Vanable overhead rate per direct labor hour Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead ZIGBY MANUFACTURING Factory Overhead Budget April May June Total Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Selling expense budget. Budgeted sales Sales commissions ZIGBY MANUFACTURING Selling Expense Budget April May June jeled balance sheet at June 30 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 41 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses Sales ZIBGY MANUFACTURING Schedule of Cash Receipts April May June $ 540.800 $ 581,000 $ 543.400 Cash receipts from Cash sales Collections of prior period sales Total cash receipts S 0 $ 05 Materials purchases Schedule of Cash Payments for Direct Materials April May June S 212.400 S 209,300 $ 188.100 Cash payments for rences Current period purchases Prior period purchases Total cash payments Mc Beginning cash balance Total cash available Less: Cash payments for Total cash payments Preliminary cash balance Ending cash balance Loan balance-Beginning of month Additional loan (oan repayment) Loan balance-End of month S 0 $ 0 $ Cash Budget April May June Loan balance April May June S Ben 7 Budgeted income statement for entire second quarter (not monthly). (Round your final answers to ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses < Req 8 to 10 0 0 $ 0 Req 12 > Budgeted balance sheet at June 30. (Round your final answers to the nearest whole ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Total assets Liabilities and Equity Liabilities Equity Total Liabilities and Equity 0