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

ZIGBY MANUFACTURING

Balance Sheet

March 31

Assets

Liabilities and Equity

Cash

$ 176,000

Liabilities

Accounts receivable

1,515,360

Accounts payable

$ 884,400

Raw materials inventory

433,400

Loan payable

12,000

Finished goods inventory

1,432,376

Long-term note payable

2,200,000

$ 3,096,400

Equipment

$ 2,640,000

Equity

Less: Accumulated depreciation

660,000

1,980,000

Common stock

1,474,000

Retained earnings

966,736

2,440,736

Total assets

$ 5,537,136

Total liabilities and equity

$ 5,537,136

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

a Sales for March total 90,200 units. Budgeted sales in units follow: April, 90,200; May, 85,800; June, 88,000; and July, 90,200. The products 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 months ending materials inventory to equal 50% of the next months direct materials requirements. The March 31 raw materials inventory is 21,670 pounds. The budgeted June 30 ending raw materials inventory is 17,600 pounds. Each finished unit requires 0.50 pound of direct materials.

c 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 72,160 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 $88,000 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 managers monthly salary is $13,200.

g Monthly general and administrative expenses include $52,800 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).

i 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 $176,000. 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 $44,000 are budgeted to be declared and paid in May.

l 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 $440,000 are budgeted for the last day of June.

Required:

Req4 Direct labor budget.

j. The minimum ending cash balance for all months is $176,000. 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 $44,000 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 $440,000 are budgeted for the last day of June. Required: 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. Direct labor budget. Note: Round per unit values to 2 decimal places. 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. Direct labor budget. Note: Round per unit values to 2 decimal pitces. To prepare a master budget for April, May, hand June, management gathers the following information. a. Sales for March total 90,200 units. Budgeted sales in units follow: April, 90,200; May, 85,800; June, 88,000; and July, 90,200. The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit. b. Raw materials. imventory consists solely of direct materials that cost $20 per pound. Company policy calis 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 21,670 pounds. The budgeted June 30 ending raw materials inventory is 17,600 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 72,160 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 or $88,000 per month is the only fixed factory overherad item. 1. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $13,200. g. Monthly general and administrative expenses include $52,800 for administrative salaries and 0.9% monthly interest on the longterm 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 occounts 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). 1. The minimum ending cosh balance for all months is $176,000. If necessary, the company borrows enough cash using a toan to