The management of Zigby Manufacturing prepared the following balance sheet for March 31 ZIGE MANUFACTURING Balance Sheet March 31 Assets Liabilities and Equity Cash $ 40,000 Liabilities Accounts receivable 344,400 Accounts payable Raw materials inventory 98,500 Loan payable Finished goods inventory 325,540 Long-term note payable Equipment $ 600,000 Equity Less: Accumulated depreciation 15e,eee 45e,eee Common stock Retained earnings Total assets $ 1.258, 440 Total liabilities and equity To prepare a master budget for April, May, and June, management gathers the following information $ 201,eee 12,000 500,000 $ 713,eee 335,600 210, 440 545,440 31,258,440 a. Sales for March total 20.500 units. Budgeted sales in units follow. April 20,500; May 19,500 June 20.000 and July, 20,500. The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit b. Raw materials Inventorv consists solelv of direct materials that cost $20 per bound Company policy calls for a alven month's ending a Sales for March total 20,500 units. Budgeted sales in units follow April, 20,500; May. 19,500; June, 20,000, and July 20,500. The product's selling price is $24.00 per unit and its total product cost is $19.85 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 4,925 pounds. The budgeted June 30 ending raw materials inventory is 4,000 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 16,400 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 $270 per direct labor hour Depreciation of $20,000 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 $3,000 9. Monthly general and administrative expenses include $12,000 for administrative salaries and 0.9% 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) 1. 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 $40,000. 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 har AA minimum A APRESIA Check my work purchases are fully paid in the next month (none are paid in the month or purchase) J. The minimum ending cash balance for all months is $40,000 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 $10,000 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 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 rereits 1 of 1 Prey Next > 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. Sum Check my work Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req3 Reg 4 Reqs Reg 6 Req? Reg 8 to 10 Req 11 Reg 12 Sales budget. ZIGBY MANUFACTURING Sales Budgets April May June Budgeted sales units Selling price per unit Total budgeted sales $ 0 $ 0 S 0 RO Reg 2 > Production budget. ZIGBY MANUFACTURING Production Budget April May June Total Budgeted sales units Calculation of desired ending inventory Next period budgeted sales units Ratio of inventory to future sales 19,500 80% 20,000 80% 20,500 80% Total required units Units to produce Raw materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Materials Budget April May Units to produce June d Materials needed for production (pounds) Total materials required (pounds) ces Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases Hel Req 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 to 10 Req 11 Re Total Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April May June Direct labor hours needed Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead es 1 Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 to 10 Reg 1 Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April May June apped Budgeted sales Book Sales commissions mint rences ning Outcome 3 Saved Help Save & Exit Check Reg 1 Reg 2 Reg 3 Reg 4 Req5 Reg 6 Red? Reg 8 to 10 Raq 11 Raq 12 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June $ 0 0 $ 0 Total general and administrative expenses Help Save May 468,000 $ June 480,000 Schedule of Cash Receipts April Sales $ 492,000 $ Cash receipts from Cash sales Collections of prior period sales Total cash receipts $ 0 $ ped 0 $ 0 ok mt June 182,000 noes Schedule of Cash Payments for Direct Materials April May Materials purchases $ 198,000 $ 201,500 $ Cash payments for Current period purchases Prior period purchases Total cash payments $ 0 $ 0 $ 0 Prey 1 of 1 Next