The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment. net Total assets Liabilities and Equity Accounts payable Short-term totes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 56,000 341.250 84.200 337, 680 819. 130 632.000 (166, 000) 166, 000 $ 1.285, 130 $ 189, 800 28,000 217,800 516,000 733. 800 351,000 200, 330 551.330 $ 1.285. 130 To prepare a master budget for April, May, and June of 2019, management gathers the following information a. Sales for March total 21000 units. Forecasted sales in units are as follows: April, 21,000 May, 15,800, June, 21600, and July, 21000 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 costis $2010 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. 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 16,800 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $12 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.30 per direct labor hout, Depreciation of $37.960 per month is treated as fixed factory overhead. f. Sales representatives commissions are 7% of sales and are paid in the month of the sales. The sales manager's monthly salarys $4,600 9. Monthly general and administrative expenses include $28,000 administrative salaries and 0.5% monthly interest on the long-term 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 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 $56,000. 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 $26,000 are to be declared and paid in May. 1. 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 quartet m. Equipment purchases of $146.000 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) 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. 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 2019 April May June Total Production budget (units) 16,840 20,440 21.120 0.50 0.50 0.50 8,420 10,220 10,560 5.110 5,280 4.210 x 13,530 15,500 14.770 Materials requirements per unit Materials needed for production Budgeted ending inventory Total materials requirements (units) Beginning inventory Materials to be purchased Material price per unit Budgeted raw material purchases 4,210 4.210 X 9,320 20 11,290 20 5,280 9,490X 30.100 20 S 200 189,800 $ 602,000 $ IS $ $ 186,400 IS 225,800 $ 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 2010 April May $ 422,100 317,580 X s 7% 7% Total Budgeted sales Sales commission percent Sales commissions June 422,100% 7% $ 29,547 xs 22.231 $ 29,547 is 81,325 Sales salaries 4,600 4.600 4,600 13,800 95,125 Total budgeted selling expenses $ 34,147 $ 26,831 $ 34 147 $