The management of Zigby Manufacturing prepared the following balance sheet for March 31. ZIEB'I'r MANUFACTURING Balance Sheet March 31 Assets Liabilities and Equity Cash 5 59,666 Liabilities Accounts receivable 455,666 Accounts payable 5 215,466 Raw materials inventory 93,666 Loan payable 31,666 Finished goods inventory 433,666 Longterm note payable 568,666 $ 746,466 Equipment 5 633,666 Equity Less: Accumulated depreciation 159,390 469,666 Common stock 354,666 Retained earnings 493,539 752,590 Total assets $ 115995339 Total liabilities and equity 5 1.159953% To prepare a master budget for April, May, and June, management gathers the following information. pin. . Sales for March total 25,000 units. Budgeted sales in units follow: April, 25000; May, 17,000; June, 22,400; and July, 25,000. The product's selling price is $26.00 per unit and its total product cost is $21.65 per unit. . 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 4,650 pounds. The budgeted June 30 ending raw materials inventory is 5,900 pounds. Each nished unit requires 0.50 pound of direct materials. . lCompany policy calls for a given month' 5 ending finished goods inventory to equal 80% of the next month's budgeted unit sales. he March 31 finished goods inventory is 20000 units. . Each nished unit requires 0.50 hour of direct labor at a rate of $15 per hour. "he predetermined variable overhead rate is $4. 60 per direct labor hour. Depreciation of $39, 713 per month is the only fixed factory overhead item. Sales commissions of 5% of sales are paid in the month ofthe sales. The sales manager's monthly salary is $4,900. . Monthly general and administrative expenses include $34,000 for administrative salaries and 0.8% monthly interest on the long term note payable. . "he company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month followrng the sale {no credIt sales are collected in the month of sale}. .All raw materials purchases are on credit and accounts payable are solely tied to ravI.r materials purchases. Raw materials purchases are fully paid in the next month {none are paid in the month of purchase]. . "he minimum ending cash balance for all months Is $59 000. 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]. Ifthe monthend preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. . Dividends of $29,000 are budgeted to be declared and paid in May. .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. . Equipment purchases of $100,000 are budgeted for the last day of June. Required: Prepare the following budgets for the months oprril, May: and June: 1. Sales budget. 5'. Production budget. 3. Direct materials budget. 4. Direct labor budgeL 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Schedule of cash 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. Complete this question by entering wur answers in the labs below. Reg 3 Reg 4 Reg 5 Reg 6 Reg 3" Reg 3 to 10 Reg 11 Reg 12 Sales budget. Budgeted sales units 25,000 $ 11000 $ 22,400 Selling price per unit 26.00 $ 26.00 $ 26.00 Total budgeted sales 5. 550,000 442,000 532,400 Rqu > Production budget. ZIGBY MANUFACTURING Production Budget April May June Total Budgeted sales units 25,000 17,000 22,400 Add: Desired ending inventory Next period budgeted sales units 17,000 22,400 25,000 Ratio of inventory to future sales 80% 80% 80% Desired ending inventory units 13,600 17,920 20,000 Total required units 38,600 34,920 42,400 Less: Beginning inventory units Units to produce Direct materials budget. (Round per unit values to 2 decimal places.) 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 ZIGBY MANUFACTURING Direct Labor Budget April May June Total Units to produce Direct labor hours needed 0 Cost of direct labor ZIGBY MANUFACTURING Factory Overhead Budget April May June Total Direct labor hours needed Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead \fZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses ZIBGY MANUFACTURING Schedule of Cash Receipts April May June Sales $ 650,000 $ 442,000 $ 582,400 Cash receipts from Cash sales Collections of prior period sales Total cash receipts 0 $ 0 $ Schedule of Cash Payments for Direct Materials April May June Materials purchases $ 199,600 $ 229,000 $ 240,400 Cash payments for Current period purchases Prior period purchases Total cash payments $ 0 $ 0 $ Cash Budget April May June Beginning cash balance Total cash available Less: Cash payments for: Budgeted income statement for entire second quarter (not monthly). (Round your nal answers to the nearest whole dollar.) Selling, general and administrative expenses Total operating expenses Budgeted balance sheet at June 30. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets 0 Total assets Liabilities and Equity Liabilities Equity Total Liabilities and Equity