The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash $ 80,000 Accounts receivable 364,000 Raw materials inventory 96,000 Finished goods inventory 364,800 Total current assets 904,800 Equipment 610,000 Accumulated depreciation (155,000 ) Equipment, net 455,000 Total assets $ 1,359,800 Liabilities and Equity Accounts payable $ 195,500 Short-term notes payable 17,000 Total current liabilities 212,500 Long-term note payable 510,000 Total liabilities 722,500 Common stock 340,000 Retained earnings 297,300 Total stockholders equity 637,300 Total liabilities and equity $ 1,359,800 To prepare a master budget for April, May, and June of 2019, management gathers the following information. Sales for March total 20,000 units. Forecasted sales in units are as follows: April, 20,000; May, 19,000; June, 19,500; and July, 20,000. Sales of 245,000 units are forecasted for the entire year. The products selling price is $26.00 per unit and its total product cost is $22.80 per unit. Company policy calls for a given months ending raw materials inventory to equal 50% of the next months materials requirements. The March 31 raw materials inventory is 4,800 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,500 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. Company policy calls for a given months ending finished goods inventory to equal 80% of the next months expected unit sales. The March 31 finished goods inventory is 16,000 units, which complies with the policy. Each finished unit requires 0.50 hours of direct labor at a rate of $20 per hour. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.20 per direct labor hour. Depreciation of $23,400 per month is treated as fixed factory overhead. Sales representatives commissions are 6% of sales and are paid in the month of the sales. The sales managers monthly salary is $3,500. Monthly general and administrative expenses include $17,000 administrative salaries and 0.9% monthly interest on the long-term note payable. 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). All raw materials purchases are on credit, and no payables arise from any other transactions. One months raw materials purchases are fully paid in the next month. The minimum ending cash balance for all months is $45,000. 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. Dividends of $15,000 are to be declared and paid in May. No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 35% in the quarter and paid in the third calendar quarter. Equipment purchases of $135,000 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.

Production budget. ZIGBY MANUFACTURING Production Budget April, May, and June 2019 April May 19,000 19,500 80% 80% Next month's budgeted sales (units) Ratio of inventory to future sales Budgeted units sales for month June 20,000 80% Required units of available production Units to be produced ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2019 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 ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2019 April May June Total Budgeted production (units) Total labor hours needed 0 Budgeted direct labor cost Calculation of Cash Payments for Merchandise July 31 Total Purchases Accounts Pay Purchase from 5 400.000 710.000 1.200.000 5 Cash Bul> Factory overhead budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2010 Apre May June Labor hours needed Total Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead Required Required 6 > Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April, Mary, and June 2019 April May June Budgeted sales Sales commissions > General and administrative expense budget ZIGGY MANUFACTURING General and Active Expense Budget April, May, and June 2010 Art Total budgeted GBA expenses Required> Cash budget. (Negative balances and Loan repayment amounts if any) should be indicated with minus Calculation of Cash receipts from customers Apre May Total budged Cash sales Sesond Total cash receipts from customers April May June Current month's cash sales Collections of receivables Total cash receipts ZIGBY MANUFACTURING Cash April, May, and June 2010 April May June Beginning cash balance Total cash avait Cash payments for Cash payments for Total cash payments Preliminary cash balance Ending cash balance Loan balance April MWY June Loan balance - Beginning of month Additional loan loan repayment) Loan balance - End of month Required Budited income sement for the entire atent for each wel Round your finanswers to the DOBY MANUFACTURING Budget comment For The Martha, Org Budgeted balance sheet. (Round your finalmers to the nearest whole dar) DOBY MANUFACTURING Build Balance Sheet Ant Front Land Totalcurentable Short Total School