The management of Zigby Manufacturing prepared the following balance sheet for March 31 To prepare a master budget for Aprit, May, and June, management gathers the following information 0. Sales for March total 22,800 units. Budgeted sales in units follow. Aprit, 22:800, Moy, 16,000; June, 23,000, and July, 22,800. The product's selling price is $25.00 per unit and its total product cost is $19.30 per unit. b. Row materials inventory consists solely of direct materials that cost $20 per pound. Company pollcy calls for a given month's ending materials inventory to equal 508 of the next month's direct materlals requirements. The March 31 raw materials inventory is 4.510 pounds. The budgeted June 30 ending raw materials inventory is 5,500 pounds. Each finshed unit requires 0.50 pound of direct. materials c. Company policy calls for a given month's ending finished goods inventory to equil 70% of the next month's budgeted unit sales. The March 31 finished goods inventory is 15,960 units. d. Each finished unit requires 0,50 hour of direct lobor at a rate of $11 per hour. e. The predetermined vanable overhead rate is $4.20 per direct labor hour. Deprecianon of $35.020 per month is the only fixed factory overhead item. 4. Sales commissions of 10% of sales are paid in the month of the sales. The sales manager's monthly salary is $4,500. 9. Monthly general and administrative expenses include $27,000 for administrative salanes and 0.6% monthly interest on the longterm note payable. h. The company budgets 30% of soles to be for cosh and the remaining 70% on credit. Credit sales are collected in full in the month following the sale (no credit saies are collected in the month of sale). 1. All raw materials purchases are on credit, and accounts payoble are solely tled to raw materials purchases. Raw materials purchases are fully pald in the next month (none are pald in the month of purchase). 1. The minimum ending cash balance for all months is $65,000. If necessary, the company borrows enough cash using a loan to reoch the minimum. Loans require an interest payment of tis at each month-end (before any repayment) if the month using a prefliminary cast balance exceeds the minimum, the excess will be used to repay any loans k. Dividends of $25,000 are budgeted to be declared and pald in May 1. No cosh payments for income taxes are budgeted in the second calendar quartec income lax will be assessed at 35% in the quarter and budgeted to be paid in the third colendar quartec m. Equipment purchases of $100,000 are budgeted for the last day of June. Complete this question by entering your answers in the tabs below. Sales budget. Complete this question by entering your answers in the tabs below. Production budget. Complete this question by entering your answers in the tabs below. Direct materials budget. (Round per unit values to 2 decimal places.) Complete this question by entering your answers in the tabs below. Direct labor budget. (Round per unit values to 2 deomal places.) Complete this question by entering your answers in the tabs below. Factory overhead budget. (Round variable overhead rate volues to 2 decimal placesi) Complete this question by entering your answers in the tabs below. Selling expense budget. Complete this question by entering your answers in the tabs below. General and administrative expense budget. Complete this question by entering your answers in the tabs below. 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 minuis sign.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 \begin{tabular}{|l|l|l|l|l|} \hline & & & & \\ \hline & & & \\ \hline & & \\ \hline & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Tolling. general and administrative expenses & & \\ \hline & & & \\ \hline & & 0 \\ \hline & & & \\ \hline \end{tabular} 10 Req 12> ZIGBY MANUFACTURING Liabilities Equity Req 11
