The management of Zigby Manufacturing prepared the following balance sheet for March 31. ZIGBY MANUFACTURING Balance Sheet March 31 Cash Accounts receivable. Assets Raw materials inventory Finished goods inventory Equipment Less: Accumulated depreciation Total assets $ 600,000 150,000 Liabilities and Equity $ 40,000 Liabilities. 344,400 98,500 325,540 450,000 Accounts payable Loan payable Long-term note payable Equity Common stock Retained earnings $ 1,258,440 Total liabilities and equity To prepare a master budget for April, May, and June, management gathers the following information. $ 201,000 12,000 500,000 335,000 210,440 $ 713,000 545,440 $1,258.440 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 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 $2.70 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. g. 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 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 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 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 Sales budget. Reg 2 Reg 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Reg 11 Reg 12 Complete this question by entering your answers in the tabs below. Req 1 Sales budget. Req 2 Budgeted sales units Selling price per unit Total budgeted sales Req 3 Req 4 ZIGBY MANUFACTURING Sales Budgets April May Reg Req 5 June Req 6 Req 7 Req 2 > Req 8 to 10 Req 11 Reg 12 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Production budget. Budgeted sales units Reg 3 Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Units to produce Req 4 Req 5 ZIGBY MANUFACTURING Production Budget April 19,500 80% Req 8 to 10 Total Req 11 Reg 12 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Direct materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Materials Budget April Units to produce Materials needed for production (pounds) Total materials required (pounds) Req 5 Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases Req 6 May Req 7 June Req 8 to 10 Req 11 Req 12. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Units to produce Req 4 Direct labor budget. (Round per unit values to 2 decimal places.) Direct labor hours needed Reg 3- Cost of direct labor Req 5 ZIGBY MANUFACTURING Direct Labor Budget April Req 8 to 101 Total Req 11 Req 12 Complete this question by entering your answers in the tabs below. Req 2 Req 1 Direct labor hours needed i Variable overhead rate per direct labor hour Req 4 Req 3 Factory overhead budget. (Round variable overhead rate values to 2 decimal places.). ZIGBY MANUFACTURING Factory Overhead Budget April Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead Req 5 Req 6 Req 8 to 10 Total Req 11 Req 12 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Selling expense budget. Budgeted sales Sales commissions Req 3 Req 4 Req 5 ZIGBY MANUFACTURING Selling Expense Budget April May Req 8 to 10 Req 11 Req 12 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 General and administrative expense budget. Total general and administrative expenses Req 5 ZIGBY MANUFACTURING General and Administrative Expense Budget April May Req 6 Req 8 to 10 Req 11 Reg 12 Req 1 Req 2 Sales Cash receipts from Cash sales Materials purchases Cash payments for Collections of prior period sales Total cash receipts Req 3 Current period purchases Prior period purchases Total cash payments 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.) Req 4 Beginning cash balance Req 5 ZIBGY MANUFACTURING Schedule of Cash Receipts April 492,000 $ Cash Budget Req 6 Schedule of Cash Payments for Direct Materials April 198,000 $ 201,500 $ April May 468,000 $ May Req 7 Prev June 480,000 182,000 June Req 8 to 10 1 of 1 Next > Req 11 Beginning cash balance Total cash available Less: Cash payments for. Total cash payments Preliminary cash balance Ending cash balance. Loan balance - Beginning of month Additional loan (loan repayment) Cash Budget April Loan balance April May May June June Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 4 ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses Req 6 Req 11 Req 12 Req 1 Total assets Liabilities Reg 2 Equity Req 3 Total Liabilities and Equity Req 4 Budgeted balance sheet at June 30. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Req 5 Liabilities and Equity Req 6 Req 71 Pray Req 8 to 10 1 of 1 Next Req 11 Req 12