The management of Zigby Manufacturing prepared the following balance sheet for March 31 TOYUNCTORING tale Start 3200,00 13.000 25,50 5713,000 140,000 hits Accounts receive 1,00 content weke wetry goods or Equipment $ 600,000 Les Accumulated depreciation 450.000 stadig Total assets $1,250,000 tallet To prepare a master budget for oril, May, and June, management gathes the following information 11. 545, P o. Sales for March total 20500 units Budgeted sales in units follow. April 20.500May 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 $1985 per unit b. Raw materials inventory consats solely of de materials that cost $20 per pound Company policy calls for a given month's onding materials inventory to equal 50% of the next month's direct materials requirements. The Match 31 raw materials inventory x 4.925 pounds. The budgeted June 30 ending raw materials inventory is 4.000 pounds. Fach feshed unit requires 050 pound of direct materials c. Company policy calls for a given morth's ending Snished goods inventory to equal Box of the peat month's budgeted unit sales The March 31 finished goods inventory is 16.400 units d. Each finished unit requires 0 50 hour of director at a rate of $15 per hour e. The predetermined variable overhead rate & $2.70 per direct laborou 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 Monthly general and administrative expemes include $12.000 for adveries and 098 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 sies are collected in fat in the month following the sale no credit sales are collected in the month of sale 1. All tow materials purchases are on credit and accounts payable are solely tied to raw materias purchases Raw materials purchases are fully paid in the next month one 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 Treach month end below any repayments the month-end preliminary cash balance exceeds the muut the excess will be used to repay any loans 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 calendu quarter ncome tax will be assessed ae 38in the quarter and budgeted to be paid in the third calendar Quartet m. Equipment purchases of $100.000 are budgeted for the last day of June Required: Prepare the following budgets for the months of Amrit May, and une 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 3. Schedule of cash receipts 9. Schedule of cash payments for direct materials 10. Cashbudget 11. Budgeted income statement for entre second content monthly 12. Budgeted balance sheet at June 30 Complete this question by entering your answers in the tabs below 1 2 Bees 10 11 12 Sales budget GHY MANUFACTURING Sludgets April May IN Sehing price po owodowa Rag 2 >
