The management of Zigby Manufacturing prepared the following estimated ba ance sheet for March 2017 IGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets s 53,000 392,400 96,600 313,920 855,920 626,000 (163,080) 463,e00 $ 1,318,920 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 204,880 25,000 229,880 520,00e 749,800 348,000 569,120 $ 1,318,920 To prepare a master budget for April. May, and June of 20172 management gathers the following information: a. Sales for March total 21,800 units. Forecasted sales in units are as follows: April, 21800, May. 18.700, June. 21000, and July, 21800 Sales of 253.000 units are forecasted for the entire year. The product's selling price is $22.50 per unit and its total product cost is o search To prepare a master budget for Apri, May, and June of 2017, management gathers the f lowing information o. Sales for March total 21,800 units. Forecasted sales in units are as follows: April. 21,800, May. 18,700 June, 21,000: and July, 21,800 b Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. Sales of 253,000 units are forecasted for the entire year The producr's selling price is $22.50 per unit and its total product cost is $18.00 per unit. The March 31 raw materials inventory is 4.830 units, which complies with the policy. The expected June 30 ending raw materlals inventory is 5,300 units. Raw materials cost $20 per unit, Each finished unit requires 0.50 units of raw materials C Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's expected unit sales. The March 31 finished goods Inventory is 17.440 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of $9 per hour Overhead is allocated based on direct labor hours, The predetermined variable overhead (ate is $4.00 per direct labor hour Depreciation of $30750 per month is treated as fixed factory overhead f. Sales representatives' commissions are 8% of sales and are paid in the north of the sales. The sales manager's monthly salary is commissions are 8% of sales and are paid in the month of the soles. T $4,300 g. Monthly general and administrative expenses include S250 O administrative salaries and 07% monthly interest on the lor-term note payable. h. The company expects 20% of sales to be for cash and the remaining 80% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale) L. Alf aw materials purchases are on credt, and no payables aise from any other transactions. One month's raw materials purchases are fully pald in the next month j. The minimum ending cash balance for all months is $53,000 If necessary, the company borrows enough cash using a short-term note to reach the minimum short term notes require an interest payment of 1% at each month-end before any repayment If the ending cash balance exceeds the minimum, the excess vwill be applied to repaying the short-term notes payable balance k. Dividends of $23,000 are to be declared and paid in May L No cash payment for income taxes are abe made during the second calen arquarter ncome tax wil be assessed at 40%in the uarter and paid in the third calendar quarter ent purchases of $143,000 are budgeted for the last day of June Required: Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the second calendar quarter, except as otherwise noted below (Round calculations up to the nearest whole dollar except for the amount of cash sales, which should be rounded down to the nearest whole dollar.) 1. Sales budget 2. Production budget. 3. Raw materials budget. 4. Direct labor budget 5. Factory overhead budget. 6. Selling expense budget 7. General and administrative expense budget. 8. Cash budget 9. Budgeted income statement for the entire second quarter (not for each month separately). 10. Budgeted balance sheet Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Required S Required 6 Required ? Required 8 Required 9 Required 10 Sales budget. (Round Budgeted unit price to 2 decimal places.) ZGBY MANUFACTURING Sales Budget April, May, and June 2017 Complete this question by entering your answers in the tabs be ow Required 1 Required 2 Required 3 Required 4 Required 5 Required Required 7 Required 9 Required 10 Required 8 Production budget. ZIGBY MANUFACTURING Production Budget April, May, and June 2017 April May June 18,700 Next month's budgeted sales (units) Ratio of inventory to future sales 21,000 80% 21,800 80% 80% Required units of available production Units to be produced Required 1 Required 2 Required 3 Required 4 Required 5 Requi n 6 Required 7 Required 8 Required 9 Required 10 Raw materials budget. (Round per unit values to 2 decimal places.) ZGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 Aprill May June Production budget (units) Materials needed for production Total materials requirements (units) Materials to be purchased Material price per unit Budgeted raw material purchases K Required 2 Required 4 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required S Requ d 6 Required 7 Required 8 Requred 9 Required 10 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May June Total Budgeted production (units) Total labor hours needed Budgeted direct labor cost K Required 3 Required 5 Complete this question by entering your answers in the tabs elow. Required 1 Required 2 Required 3 Required 4 Required 5 Require 6 Required 7 Required 8 Required 9 Required 10 Factory overhead budget. (Round per unit values to 2 decimal places ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 May April June Total Labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead