The management of Zigby Manufacturing prepared the following balance sheet for March 31 EIGDY MANUFACTURING balance sheet March 1 Ant Liabilities and Equity Cash $ 65,000 Liabilities Accounts receivable 421, 470 Accounts payable w materials inventory 67,500 Loan payable Finished goods Inventory 374,640 Long-tern note payable Equipment 624,000 Equity Last Accumulated depreciation 262.000 462.000 Common stock Retained earning Total asset $ 1.410,610 Total liabilities and equity To prepare a master budget for April, May, and June, management gathers the following information $ 199,450 24,000 500.000 723,400 347,000 340,210 682,210 51.410,610 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 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 4,375 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 unt 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 hout. Depreciation of $31672 per month is the only fixed factory overhead item f. Sales commissions of 10% of sales are paid in the month of the sales. The sales manager's monthly salary is $4.200 g. Monthly general and administrative expenses include $24,000 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). L. 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 $65,000. 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 $22,000 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 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, Reg 1 Reg 2 Req Res legs Reg 6 Reg Reg 8 to 10 Reg 11 Reg 12 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials, 10. Cash budget (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Show less ZIBOY MANUFACTURING Schedule of Cash Receipts April 5 602,100 $ MAY 440,100 5 June 612,900 Sales Cash receipts from Cash sales Collections of prior period sales Totalcash receipts 05 Aprin June 215,000 Schedule of Cath Payments for Direct Materials May Material purchases $ 194.600 $ 219.000 5 Cash payments for Current period purchases Prior period purchases Total cash payments 05 0$ o Cash Budget April May June Beginning cash balance Total cash available Low: Cash payment for Total cash payments Preliminary Cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional fan floan repayment) Loan balance - End of month Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Req 5 Reg 6 Reg 7 Req 8 to 10 Reg 11 Req 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 $