The management of Zigby Manufacturing prepared the following balance sheet for March 31. ZIGDY MANUFACTURING Balance sheet March 31 Assets Liabilities and Equity Cash $ 54,000 abilities Accounts receivable 362,250 Accounts payable raw materials inventory 100,500 Loan payable Tinished goods inventory 333,000 Long-term note payable Equipment $ 628,000 Equity Lens Accumulated depreciation 166,000 464,000 Common stock Retained earnings Total ansata 01.313,750 Total liabilities and equity To prepare a master budget for April, May, and June, management gathers the following information $ 212,200 26,000 500.000 $ 738,200 349,000 226.550 175,550 52.250 a. Sales for March total 22,500 units. Budgeted sales in units follow: April, 22,500; May, 19,500; June, 21700, and July, 22,500. The product's selling price is $23.00 per unit and its total product cost is $18.50 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 5,025 pounds. The budgeted June 30 ending raw materials inventory is 5,400 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 18,000 units. d. Each finished unit requires 0,50 hour of direct labor at a rate of $10 per hour. e. The predetermined variable overhead rate is $4.10 per direct labor hour Depreciation of $30,788 per month is the only fixed factory overhead item Saved Help 20 HW e. The predetermined variable overhead rate is $4.10 per direct labor hour. Depreciation of $30,788 per month is the only fixed factory overhead Item 1. Sales commissions of 6% of sales are paid in the month of the sales. The sales manager's monthly salary is $4,400. 9. Monthly general and administrative expenses include $26,000 for administrative salaries and 0.5% 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) 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 $54,000. 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 $24,000 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. A Seheranfrach rorante Dron A A A Nint D. diviy uvedu uuuuuu 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. Reg 1 Reg 2 Req3 Reg 4 Reg 5 Reg 6 Reg 2 Reg 8 to 10 Reg 11 Reg 12 Sales budget. ZIGBY MANUFACTURING Sales Budgets April May June Budgeted sales units Selling price por unit Total budgeted sales $ 0 $ 05 0 Hea Reg 2 > Reg 1 Reg 2 Reg 3 Reg 4 Req 5 Reg 6 Reg 7 Reg 8 to 10 Reg 11 Reg 12 Direct materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Materials Budget April May June Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases Reg1 Reg 2 Req3 Reg 4 Reg 5 Reg 6 Reg 2 Reg 8 to 10 Reg 11 Reg 12 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGAY MANUFACTURING Direct Labor Budget April May Juno Total Units to produce Direct labor hours needed 0 Cont of direct labor ( Req3 Req5 > Reg 8 to 10 Reg 11 Reg 12 Reg 1 Reg 2 Reg 3 Req 7 Reg 4 Reg 5 Reg 6 Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) June Total ZIGBY MANUFACTURING Factory Overhead Budget April May Direct labor hours needed Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead Reg 1 Reg 3 Reg 2 Reg 4 Req 5 Reg 6 Reg 12 Reg 2 Reg 8 to 10 Reg 11 Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April May June Budgeted sales Sales commissions Complete this question by entering your answers in the tabs below. Reg 11 Reg 12 Reg 7 Reg 8 to 10 Reg 2 Req 5 Reg 1 Req3 Reg 6 Reg 4 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses Show less ZIBGY MANUFACTURING Schedule of Cash Receipts April $ 517,500 $ May 448,500 $ June 499 100 Sales Cash receipts from Cash sales Collections of prior period sales Total cash receipts $ $ 0 $ 0 June 219,700 Schedule of Cash Payments for Direct Materials April May Materials purchases $ 206,800 $ 218,000 $ Cash payments for Current period purchases Prior period purchases Total cash payments S $ 0 Cash Budget April May Juno Beginning cash balance Prev 4 of 4 !! Next ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended Juno 30 Selling general and administrative expenses Total operating expenses 0 0 $ 0 Budgeted Balance Sheet June 30 Assets 0 Total assets Liabilities and Equity Liabilities Equity ed 0 Total assets ok Liabilities and Equity ht Liabilities Ences Equity Total Liabilities and Equity