The management of Zigby Manufacturing prepared the following balance sheet for March 31 Assets Cash Accounts receivable Raw materials Inventory Finished goods inventory Equipment Less: Accumulated depreciation ZIGBY MANUFACTURING Balance Sheet March 31 Liabilities and Equity $ 42,000 abilities 378,560 Accounts payable 107,200 Loan payable 349,440 Long-term note payable Equity 452,000 Connon stock Retained earnings S 129,200 Total liabilities and equity $ 211,300 14,000 500,000 $ 725, 5 604,900 152,000 337,000 266,900 Total assets 603,900 51329),200 To prepare a master budget for April, May, and June, management gathers the following information overhead item a. Sales for March total 20,800 units Budgeted sales in units follow April, 20,800, May, 21,600, June, 20,900, and July, 20,800. The product's selling price is $26.00 per unit and its total product costs $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 matenals requirements. The March 31 raw materials inventory is 5,360 pounds The budgeted June 30 ending raw materials inventory is 4 200 pounds. Each finished unit requires 0.50 pound of direct materials c. Company policy calis 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 16,640 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $17 per hour e. The predetermined variable overhead rate is $300 per direct labor hour Depreciation of $21,100 per month is the only fixed factory 1. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $3,200. 9. Monthly general and administrative expenses include $14,000 for administrative salaries and 0.7% 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 $42,000. 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 $12,000 are budgeted to be declared and paid in May 1. No cash payments for income taxes are hudacted in the second I. NO CASH payments for More taxes die vuugee me second Calenud quarter incuted will be used 35 le 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 ok 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 nces Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 12 Reg 8 to 10 Reg 11 Production budget. ZIGBY MANUFACTURING Production Budget April 20,800 June Total May 21,600 20,900 Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units 21,600 80% 20.900 80% 20.800 80% 16,640 Units to produce Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg Reg 4 Reg 5 Reg 6 Reg Reg 8 to 10 Reg 11 Red 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 matenals required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases 11. Budgeted Income statement for entire second quarter (not monthly). 12. Budgeted balance sheet at June 30. w Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 to 10 Req 11 Reg 12 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April May June Total Units to produce Direct labor hours needed Cost of direct labor complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Deas Reg 6 Req 7 Reg 8 to 10 Reg 11 Reg 12 Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April May June Total Direct labor hours needed Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 to 10 Reg 11 Reg 12 Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April May June Budgeted sales Sales commissions 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 Req 7 Reg 8 to 10 Req 11 Reg 12 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses ( Req 6 Req 8 to 10 > (Negative balances and Loan repayment amounts (if any) should be indicated with minus ZIBGY MANUFACTURING Schedule of Cash Receipts April $ 540,800 $ May 561,600 $ June 543,400 Sales Cash receipts from Cash sales Collections of prior period sales Total cash receipts $ 0 $ $ 0 June 188.100 Schedule of Cash Payments for Direct Materials April May Materials purchases S 212,400 5 209,300 $ Cash payments for Current period purchases Prior period purchases Total cash payments S 0 $ 0 S 0 Cash Budget April May June Beginning cash balance Total cash available Less Cash payments for Less Cash payments for Total cash payments Premety cash balance Ending cash balance Loan Am May Loan balance Beaning of month Aisitional loan on repayment) na balance - End of month $ D ( Req? Reg 11 > Req 1 Req 2 Reg 3 Req 4 Reg 5 Reg 6 Budgeted income statement for entire second quarter (not monthly). (Round ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses 0 0 $ 0