The management of Zigby Manufacturing prepared the following balance sheet for March 31 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Lass: Accumulated depreciation SIGUY MANUFACTURING Balance sheet March 31 Liabilities and Equity 558,000 Liabilities 440,370 Accounts payable 91,300 Loan payable 393, 304 Long-term note payable Equity 460,000 Common stock Retained earnings 5 1.450, 974 total liabilities and equity 5 206, 400 30,000 500,000 $736,400 5 636,000 168,000 353,000 361,574 714,574 $ 1,450,974 Total soto a. Sales for March total 23,300 units. Budgeted sales in units follow: April, 23,300; May, 17,000: June, 21,900; and July, 23,300. The product's selling price is $27.00 per unit and its total product cost is $2110 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 4,565 pounds. The budgeted June 30 ending raw materials inventory is 5,800 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 18,640 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $14 per hour. e. The predetermined variable overhead rate is $4.50 per direct labor hour. Depreciation of $38,357 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 $4,800. g. Monthly general and administrative expenses include $30,000 for administrative salaries and 0.8% monthly tnterest 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 $58,000. 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 $28,000 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: Reg 1 Req 2 Req3 Req 4 Reg 5 Req6 Req 7 Reg 8 to 10 Raw materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Materials Budget April May June ces 18,260 20,920 23,020 0.50 0.50 0.50 9,130 10,460 11,510 Units to produce Materials requirements per unit (pounds) Materials needed for production (pounds) Add: Desired ending inventory Total materials required (pounds) Less: Beginning materials inventory 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 Selling expense budget. s ZIGBY MANUFACTURING Selling Expense Budget April May June Budgeted sales Sales commissions Print Req 1 Reg 2 Req3 Reg 4 Reg 5 Req 6 Req Reg 8 to 10 Req 11 Req References General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses 1 ZIBGY MANUFACTURING Schedule of Cash Receipts April 285 $ May 459,000 $ 629,100 $ June 591,300 points Sales Cash receipts from Cash sales Collections of prior period sales Total cash receipts eBook $ 0 $ 0 $ 0 Print References June 231, 100 Schedule of Cash Payments for Direct Materials April May Materials purchases s 195,900 $ 219,700 $ 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 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 $ 0 Prev 1 of 7 acer Req1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 RE Budgeted income statement for entire second quarter (not monthly). (Round your final ar ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses 0 0 $ 0 Budgeted Balance Sheet June 30 Assets Total current assets $ 0 ces Equipment net 0 Total assets Liabilities and Equity Liabilities Bank loan payable 0 Total current liabilities Equity Total Fruity