The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet panr March 31, 2017 Assets Cash 54,000 354,375 Accounts receivable Raw materials inventory Finished goods inventory 100,495 333,000 Total current assets 841,870 628,000 Equipment, gross Accumulated (164,000) depreciation Equipment, net 464,000 $1,305,870 Total assets Liabilities and Equity Accounts payable 212,195 Short-term notes 26,000 payable Total current 238,195 liabilities Long-term note payable 514,000 752,195 349,000 204,675 Total liabilities Common stock Retained earnings Total stockholders' 553,675 equity Total liabilities and s1.305,870 equity 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 22,500 units. Forecasted sales in units are as follows: April, 22,500; May, 19,500; June, 21,700; and July, 22,500. Sales of 254,000 units are forecasted for the entire year. The product's selling price is $22.50 per unit and its total product cost is $18.50 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 5,025 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,400 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 18,000 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $10 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.10 per direct labor hour. Depreciation of $30,790 per month is treated as fixed factory overhead. oprorer f. Sales representatives' commissions are 6% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,400. g. Monthly general and administrative expenses include $26,000 administrative salaries and 0.5% monthly interest on the long-term note payable. h. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). i. 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 $54,000. 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 $24,000 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 $144,000 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.): the nearest whole dollar, except for the amount of cash sales, which should be rounded down 1. Sales budget udget. 3. Raw materials ud 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. get Complete this question by entering your answers in the tabs below. Requir... Requi... Requir... Requir... Requir... Requir... Requir... Requir... Requir... Requir... 2 3 4 6 7 10 Sales budget. (Round Budgeted unit price to 2 decimal places.) ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 BudgetedBudgeteBudgeted Sales Dollars Unit Unit Sales Price April 2017 May 2017 June 2017 Totals for the second quarter Required 1 Required 2 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. Requi... Requir... Requi... Requi... Requir... Requir... Requir... Requi... Requir... Requir... 6 4 8 10 1 5 7 9 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 22,500 19,500 21,700 80% 80% 80% Required units of available production Units to be produced 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. Requi... Requi... Requi... Requi... Requi... Requi... Requi... Requi... Requi... Requi... 10 1 2 3 4 5 6 7 9 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 Required 2 Required 4> 23 of 27 Prev Next 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.): Sales budget. 2. Production budget. 3. Raw materials budget. Direct labor budget 5 budget. ctory ove udget 6. Selli 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. Requi... Requi.. Requi... Requi... Requi... Requi.. Requi... Requi... Requi... Requi.. 10 1 2 3 4 5 7 CO Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April, May, June 2017 May June Total April Budgeted production (units) Total labor hours needed 0 Budgeted direct labor cost Required 3 Required 5 > 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. Dire 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 labor budget. Complete this question by entering your answers in the tabs below. Requi... Requi... Requi... Requi... Requi... Requi... Requi... Requi... Requi... Requi... 8 1 2 3 4 6 7 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 Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead Required 4 Required 6 > 23 of 27 Prev Next