The management of Zigby Manufacturing prepared the following balance sheet for March 31. Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Less: Accumulated depreciation ZIGBY MANUFACTURING Balance Sheet March 31 Liabilities and Equity $ 53,000 Liabilities 350,980 Accounts payable 96,600 Loan payable 313,920 Long-term note payable Equity 463,000 Common stock Retained earnings $ 1,277,500 Total liabilities and equity $ 204,800 25,000 500,000 $ 729,800 $ 626,000 163,000 348,000 199,700 547,700 $ 1,277,500 Total assets To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 21,800 units. Budgeted sales in units follow: April, 21,800; May, 18,700; June, 21,000; and July, 21,800. The product's selling price is $23.00 per unit and its total product cost is $18.00 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 4,830 pounds. The budgeted June 30 ending raw materials inventory is 5,300 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 17,440 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $9 per hour. e. The predetermined variable overhead rate is $4.00 per direct labor hour. Depreciation of $30,750 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 $4,300. g. Monthly general and administrative expenses include $25,000 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 $53,000. 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 $23,000 are budgeted to be declared and paid in May. I. 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. Required: Prepare the following budgets for the months of April, May, and June: 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. 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 your answers in the tabs below. Req 1 Req 2 Req3 Reg 4 Req 5 Req 6 Reg 7 Req 8 to 10 Req 11 Req 12 Sales budget. ZIGBY MANUFACTURING Sales Budgets April May 21,800 $ 18,700 $ $ 23.00 $ 23.00 $ $ 501,400 $ 430,100 $ Budgeted sales units Selling price per unit Total budgeted sales June 21,000 23.00 483,000 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 to 10 Req 11 Req 12 Production budget. May June Total 18,700 21,000 ZIGBY MANUFACTURING Production Budget April Budgeted sales units 21,800 Calculation of desired ending inventory Next period budgeted sales units 18,700 Ratio of inventory to future sales 80% Add: Desired ending inventory 14,960 Total required units 21,800 Less: Beginning inventory units 16,800 Units to produce 5,000 21,800 80% 21,000 80% 16,800 18,700 16,800 21,000 16,800 4,200 14,960 3,740 12,940 c Dec 1 Don2 Reg 1 Req 2 Reg 3 Reg 4 Reg 5 Req 6 Reg 7 Req 8 to 10 Reg 11 Reg 12 Raw materials budget. (Round per unit values to 2 decimal places.) May June 3,740 4,200 ZIGBY MANUFACTURING Direct Materials Budget April Units to produce 5,000 Materials requirements per unit (pounds) 0.50 Materials needed for production (pounds) 2,500 Add: Desired ending inventory 935 Total materials required (pounds) 3,435 0.50 0.50 1,870 2,100 1,050 2,920 Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases Req 1 Reg 2 Reg 3 Reg 4 Reg 5 Req 6 Req 7 Req 8 to 10 Reg 11 Reg 12 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April May June Total Units to produce Direct labor hours needed Cost of direct labor Req 1 Req 2 Reg 3 Reg 4 Req 5 Reg 6 Reg 7 Req 8 to 10 Reg 11 Req 12 Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) 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 Req 1 Req 2 Req 3 Req 4 Reg 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April May June Budgeted sales Sales commissions Reg 1 Reg 2 Req3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 to 10 Reg 11 Req 12 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses ZIBGY MANUFACTURING Schedule of Cash Receipts April $ 501,400 $ June May 430,100 $ 483,000 Sales Cash receipts from Cash sales Collections of prior period sales Total cash receipts $ 0 $ 0 $ 0 June 214,200 Schedule of Cash Payments for Direct Materials April May Materials purchases $ 199,300 $ 210,900 $ Cash payments for Current period purchases Prior period purchases Total cash payments 0 $ $ 0 0 Cash Budget April May June Beginning cash balance Total cash available Less: Cash payments for: 0 0 Total cash payments Preliminary cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month HA 0 Req 1 Reg 2 Reg 3 Reg 4 Reg 5 Req 6 Req 7 Req 8 to 10 Reg 11 Reg 12 Budgeted income statement for entire second quarter (not monthly). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses 0 $ 0 Req 1 Req 2 Reg 3 Reg 4 Req 5 Reg 6 Req 7 Reg 8 to 10 Reg 11 Req 12 Budgeted balance sheet at June 30. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Total current assets $ 0 0 Equipment, net Total assets Liabilities and Equity Liabilities Bank loan payable 0 Total current liabilities Equity Total Equity Total Liabilities and Equity