The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY 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 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 $ 59,000 487,500 93,010 433,000 1,072,510 638,000 (169,000) 469,000 $ 1,541,510 $ 215,410 31,000 246,410 530,000 776,410 354,000 411,100 765, 100 $ 1,541,510 To prepare a master budget for April, May, and June of 2017, management gathers the following information: To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 25,000 units. Forecasted sales in units are as follows: April, 25,000; May, 17,000; June, 22,400; and July, 25,000. Sales of 259,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $21.65 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 4,650 units, which complies with the policy. The expected June 30 ending raw materials Inventory is 5,900 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 20,000 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $15 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.60 per direct labor hour. Depreciation of $39,710 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 5% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,900. g. Monthly general and administrative expenses include $34,000 administrative salaries and 0.8% monthly interest on the long-term note payable. h. The company expects 25% of sales to be for cash and the remaining 75% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). 1. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases are fully paid in the next month. J. The minimum ending cash balance for all months is $98,000. 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 will be applied to repaying the short-term notes payable balance. k. Dividends of $29,000 are to be declared and paid in May. I. No cash payments for Income taxes are to be made during the second calendar quarter. Income tax will be assessed at 40% In the quarter and paid in the third calendar quarter. m. Equipment purchases of $149,000 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 5 Required 6 Required 7 Required 8 Required 9 Required 10 Sales budget. (Round Budgeted unit price to 2 decimal places.) ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 Budgeted Budgeted Budgeted Unit Sales Unit Price Sales Dollars April 2017 25,000 $ 26.00 $ 650,000 May 2017 17,000 26.00 442,000 June 2017 22,400 26.00 582,400 Totals for the second quarter 64,400 $ 1,674,400 Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Production budget. Total ZIGBY MANUFACTURING Production Budget April, May, and June 2017 April May Next month's budgeted sales (units) 17,000 22,400 Ratio of inventory to future sales 80% 80% Budgeted ending inventory (units) 13,600 17,920 Budgeted units sales for month 25,000 17,000 Required units of available production 38,600 34,920 Beginning inventory (units) (20,000) (13,600)| Units to be produced 18,600 21,320 June 25,000 80% 20,000 22,400 42,400 (17,920) 24,480 64,400 (Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Raw materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 April May Production budget (units) 18,600 21,320 Materials requirements per unit 0.50 0.50 Materials needed for production 9,300 10,660 Budgeted ending inventory 4,650 Total materials requirements (units) 13,950 Beginning inventory (4,650) Materials to be purchased 9,300 Material price per unit | $ 20 $ Budgeted raw material purchases $ 186,000 June 24,480 0.50 12,240 Required 2 Required 4 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Direct labor budget. (Round per unit values to 2 decimal places.) Total ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May Budgeted production (units) 18,600 21,320 Labor requirements per unit (hours) 0.50 0.50 Total labor hours needed Direct labor rate (per hour) Budgeted direct labor cost June 24,480 0.50 Required 3 Required 5 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 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 April May June Total Labor hours needed Variable factory overhead rate Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 April May June Budgeted sales Sales commission percent Sales commissions Sales salaries Total budgeted selling expenses Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April May June Salaries Interest on long-term note Total budgeted G&A expenses Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Calculation of Cash receipts from customers: $ $ $ Total budgeted sales Cash sales Sales on credit April 650,000 162,500 487,500 May 442,000 110,500 331,500 June 582,400 145,600 436,800 25% 75% $ $ $ Total cash receipts from customers April $ 162,500 487,500 $ 650,000 $ Current month's cash sales Collections of receivables Total cash receipts $ May 110,500 331,500 442,000 June 145,600 436,800 582,400 $ $ ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 April May June Beginning cash balance Cash receipts from customers from customers Total cash available Cash payments for: Raw materials Direct labor Variable overhead overhead Sales commissions General & administrative salaries Dividends Loan interest Long-term note interest Purchases of equipment Purchase of land Taxes paid Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 0 Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month (Required 7 Required 9 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Budgeted income statement for the entire second quarter (not for each month separately). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Operating expenses Total operating expenses Required 8 Required 10 > Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets Total current assets Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity