The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estinated Balance Sheet Narch 31, 2017 Assets Cash Accounts receivable Raw naterials inventory Pinished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets $ 44,000 500,000 90,200 44,000 1,078,200 608,000 (154,000 454,000 Print $1,532,200 Liabilities and Equity Accounts payable Short-tern notes payable Total current liabilities Loeg-ters note payable Total liabilities Common stock Retained earninga Total stockholders' equity Total liabilities and equity s 211,300 16,000 227,300 505 000 339,000 460,900 $1,532,200 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. 16,300 June, 21100: and July b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. C Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's expected unit sales. d. Each finished unit requires 0.50 hours of direct labor at a rate of $19 per hour 25,000. Sales of 244,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $22.20 per unit The March 31 raw materials inventory is 4,510 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,400 units, Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials The March 31 finished goods Inventory is 20,000 units, which complies with the policy Depreciation of $23,920 per month is treated as fixed factory overhead e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.10 per direct labor hour. Sales representatives' commissions are 6% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3.400. f. Prev1 of 1 E Next