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The management of Zigby Manufacturing prepared the following balance sheet for March 31 . Sales budget. Production budget. Direct materials budget. (Round per unit values

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The management of Zigby Manufacturing prepared the following balance sheet for March 31 . Sales budget. Production budget. Direct materials budget. (Round per unit values to 2 decimal places.) Direct labor budget. (Round per unit values to 2 decimal places.) Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) Selling expense budget. General and administrative expense budget. Budgeted income statement for entire second quarter (not monthly). (Round your final answers to the Rudnated halanca chapt at tuna 30 (Rnund wir final ancware in tha nasrest whole dollar.) a. Sales for March total 23,200 units. Budgeted sales in units follow. April, 23,200, May, 17100, June, 21,900; and July, 28,200. The product's selling price is $2500 per unit and its total product cost is $2050 per unit. b. Raw materials inventory consists solely of direct materlals 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 4.580 pounds. The budgeted June 30 ending raw materials inventory is 5.700 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 equar 80 of the next month's budgeted unit sales The March 31 finished goods inventory is 18.560 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $13 per hour e. The predetermined variable overhead rate is $4,40 per direct labor houn Depreclation of $37,920 per month is the only fixed factory overhead item 1. Sales commissions of 5% of sales are paid in the month of the sales. The sales managers monthy salary 5$400. g. Monthly general and administrative expenses include $29.000 for administrative salanes and 0.89 monthly interest on theilongterm note payable h. The company budgets 30% of sales to be for cash and the remaining 70% an cedit Credit sales are collected in fum in the month following the sale (no credit sales are collected In the month of sale) 1. All raw materiais purchases are on credit, and accocints payable are sole-y tec to raw materials purchases Raw materials purchases are fully paid in the next month (none are paid in the month of putchase) 1. The minimum ending cash balance for al months is $57.000 ir necessary the company porrows entiough cash using a voan to reach the minimum: Loans require an interest payment of 1% at each menthend before any repaywent if the nonth-end preliminary casth balance exceeds the minimum, the excess wal be used to repay ony oans k. Dividends of $27,000 are budgeted to be deciared and paid in Moy? L. Na cash payments for income taxes are bucgeted in the second calencar quattet income tax win be as sessed at 35: in the quarte and budgeted to be paid in the third calendar quarter m. Equipment purchase of $100,000 are budgeted for the last day or yane

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