The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 20 polnts 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 $57,000 464,000 91,600 eBook 380,48 Print 993,080 634,000e 167,000 467,000 $ 1,460,080 References 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 $ 206,300 29,000 235,300 520,000 755,300 352,000 352,780 704,780 $ 1,460,080 a. Sales for March total 23,200 units. Forecasted sales in units are as follows: April, 23,200; May, 17,100; June, 21,900; and July 23,200. Sales of 257,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $20.50 per unit. o. 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 4,580 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,700 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 18,560 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $13 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.40 per direct labor hour. f. Sales representatives' commissions are 5% 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 $29,000 administrative salaries and 0.8% monthly interest on the long-term 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 i. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases j. The minimum ending cash balance for all months is $99,000. If necessary, the company borrows enough cash using a short-term Depreciation of $37,320 per month is treated as fixed factory overhead $4,700 note payable following the sale (none are collected in the month of the sale) are fully paid in the next month. 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 $27000 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. n. Eauipment purchases of $147000 are budaeted for the last dav of June Required Prepare the following budgets and other financial Information as required. All budgets and ot prepared for the second calendar quarter, except as otherwise noted below. (Round calculati except for the amount of cash sales, which should be rounded down to the nearest whole 1. Sales budget. 2. Production budget. 3. Raw materlals budget. 4. DIrect labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and adminlstrative expense budget. 8. Cash budget. 9. Budgeted Income statement for the entire second quarter (not for each month separately) 10. Budgeted balance sheet. Production budget ZIGBY MANUFACTURING Production Budget April, May, and June 2017 April May June Next month's budgeted sales (units) Ratio of inventory to future sales 17,100 21,900 23,200 80% 80% 80% Required units of available production Units to be produced Raw materials budget. (Round per unit values to 2 decimal places.), ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 April 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 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 TI Budgeted production (units) Total labor hours needed Budgeted direct labor cost imal places.)... Factory overhead budget. (Round per unit values to 2 deci ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 May April Total June Labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead Selling expense budget.. se budget ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 May April June Budgeted sales Sales commissions General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April May June Total budgeted G&A expenses