The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017:

Problem 22-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 50 points The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, Assets 56,08e 341,250 84,200 337.680 819,130 632,800 (166,009) 466,800 $ 1,285,130 Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipnent, net Total assets Liabilities and Equity 189,800 Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock 28,800 217,800 516,000 733,800 351,800 200,330 Retained earnings Total stockholders' equity Total liabilities and equity S 1,285,130 To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 21,000 units. Forecasted sales in units are as follows: April, 21,000: May, 15.800 June, 21,600; and July. 21.000 Sales of 256,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $20.10 per unit b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements The March 31 raw materials inventory is 4,210 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,600 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. e. 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 16.800 units. which complies with the policy e. Overhead is allocated based on direct labor hours. The predetermined veriable overhead rate is S4.30 per direct labor hour f. Sales representatives' commissions are 7% of sales and are paid in the month of the sales. The sales manager's monthly salary is g. Monthly general and administrative expenses include $28,000 administrative salaries and 05% monthly interest on the long-term Each finished unit requires 0.50 hours of direct labor at a rate of S12 per hour Depreciation of $37960 per month is treated as fixed factory overhead $4.600. note payable h. The company expects 35% of sales to be for cash and the remaining 65% on credit. Receivables are collected in full in the month 1 of 2 l Next > Rrev