The management of Zigby Manufacturing prepared the following balance sheet for March 31.

ZIGBY MANUFACTURING
Balance Sheet
March 31
Assets			Liabilities and Equity
Cash		$ 48,000	Liabilities
Accounts receivable		423,150	Accounts payable	$ 187,200
Raw materials inventory		87,900	Loan payable	20,000
Finished goods inventory		383,760	Long-term note payable	500,000	$ 707,200
Equipment	$ 616,000		Equity
Less: Accumulated depreciation	158,000	458,000	Common stock	343,000
			Retained earnings	350,610	693,610
Total assets		$ 1,400,810	Total liabilities and equity		$ 1,400,810

To prepare a master budget for April, May, and June, management gathers the following information.

1. Sales for March total 19,500 units. Budgeted sales in units follow: April, 19,500; May, 17,100; June, 21,300; and July, 19,500. The products selling price is $31.00 per unit and its total product cost is $24.60 p1200er unit.
2. Raw materials inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given months ending materials inventory to equal 50% of the next months direct materials requirements. The March 31 raw materials inventory is 4,395 pounds. The budgeted June 30 ending raw materials inventory is 4,800 pounds. Each finished unit requires 0.50 pound of direct materials.
3. Company policy calls for a given months ending finished goods inventory to equal 80% of the next months budgeted unit sales. The March 31 finished goods inventory is 15,600 units.
4. Each finished unit requires 0.50 hour of direct labor at a rate of $23 per hour.
5. The predetermined variable overhead rate is $3.40 per direct labor hour. Depreciation of $27,020 per month is the only fixed factory overhead item.
6. Sales commissions of 7% of sales are paid in the month of the sales. The sales managers monthly salary is $3,800.
7. Monthly general and administrative expenses include $20,000 for administrative salaries and 0.5% monthly interest on the long-term note payable.
8. 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).
9. 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).
10. The minimum ending cash balance for all months is $48,000. 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.
11. Dividends of $18,000 are budgeted to be declared and paid in May.
12. 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.
13. 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.

Updated*

Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 to 10 Reg 11 Reg 12 Sales budget. ZIGBY MANUFACTURING Sales Budgets April May 19.500 S 17,100 June 21,300 S Budgeted sales units Selling price per unit Total budgeted sales $ 31.00 $ 604.500 $ 31.00 $530,100 S s 31.00 660.300 Req 1 Reg 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 to 10 Reg 11 Reg 12 Production budget. ZIGBY MANUFACTURING Production Budget April May 19.500 17.100 June Total 21,300 17.100 21,300 19,500 80% 80% 8096 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 Less: Beginning inventory units Units to produce 13.680 17.040 15,600 33,180 34,140 36.900 15,600 13.680 17.040 17.580 20,460 19,860 57,900 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Req5 Req 7 Reg 8 to 10 Reg 11 Reg 12 Direct materials budget. (Round per unit values to 2 decimal places.) May June 17,100 21,300 ZIGBY MANUFACTURING Direct Materials Budget April Units to produce 19.500 Materials required per unit (pounds) 0.50 Materials needed for production (pounds) Add: Desired ending inventory 1,200 Total materials required (pounds) 10.950 0.50 0.50 9.750 8,550 10,650 Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Regs Req6 Reg 7 Reg 8 to 10 Reg 11 Req 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 Reg 5 Reg 6 Reg 7 Reg 8 to 10 Reg 11 Reg 12 Total Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April May June 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 Req6 Reg 7 Reg 8 to 10 Reg 11 Req 12 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 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 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 ZIBGY MANUFACTURING Schedule of Cash Receipts April s 604,500 May 530,100 June 660,300 Sales $ $ Cash receipts from Cash sales Collections of prior period sales Total cash receipts 0 $ 0 $ 0 June 195,300 $ Schedule of Cash Payments for Direct Materials April May Materials purchases 190,200 $ 201,600 Cash payments for Current period purchases Prior period purchases Total cash payments s 0 $ $ 0 Cash Budget April May June Beginning cash balance Total cash available Less: Cash payments for 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 s 0 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 to 10 Reg 11 Reg 12 Budgeted income statement for entire second quarter (not monthly). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses 0 0 S 0 Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 to 10 Reg 11 Reg 12 Budgeted balance sheet at June 30. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Total assets Liabilities and Equity Liabilities Equity Total Liabilities and Equity