The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 1 TIGAY MANUFACTURING Estimated balance sheet March 1, 2017 5 42,00 364,000 107.300 4.40 2,640 604,000 (152,000) 452,000 $1,314,640 Cash Accounts receivable Raw materials inventory Finished goods invertory Total current sets pent. gross Accumulated depreciation quant, et Total acces Librities and quity Accounts payable Short-term sotes payable Total current les Loter note payable Total liabilities Common stock Retained warning Total stockholders wity Total Tibilities and equity 1 211,000 10,000 225,00 $10.000 735. 337.000 142, 140 529140 $1,314,640 To prepare a master budget for April, May, and June of 2017, management Gathers the following information a. Salen for March total 20,800 units. Forecasted sales in units are as follows: April, 20,800; May, 21600June, 20,900, and July 20800 Sales of 242.000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $21.00 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 5,360 units, which complies with the policy. The expected June 30 ending raw materials Inventory is 4,200 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 endina finished goods Inventory to equal 80% of the next month's expected unit sales. 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 16,640 units, which complies with the policy d. Each finished unit requires 0,50 hours of direct labor at a rate of $17 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.00 per direct labor hour. Depreciation of $21100 per month is treated as fixed factory overhead f. Sales representatives commissions are 8% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,200 9. Monthly general and administrative expenses include $14,000 administrative salaries and 0.7% 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) 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 $42.000. 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 $12.000 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 quarter. m. Equipment purchases of $132,000 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 aciministrative expense budoet. 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. Required 1 Required 2 Required 3 Required Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets Total current assets $ 0 Equipment, net 0 Total assets Liabilities and Equity Liabilities Budgeted Balance Sheet June 30, 2017 1 Assets Total current assets $ 0 0 Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 1 TIGAY MANUFACTURING Estimated balance sheet March 1, 2017 5 42,00 364,000 107.300 4.40 2,640 604,000 (152,000) 452,000 $1,314,640 Cash Accounts receivable Raw materials inventory Finished goods invertory Total current sets pent. gross Accumulated depreciation quant, et Total acces Librities and quity Accounts payable Short-term sotes payable Total current les Loter note payable Total liabilities Common stock Retained warning Total stockholders wity Total Tibilities and equity 1 211,000 10,000 225,00 $10.000 735. 337.000 142, 140 529140 $1,314,640 To prepare a master budget for April, May, and June of 2017, management Gathers the following information a. Salen for March total 20,800 units. Forecasted sales in units are as follows: April, 20,800; May, 21600June, 20,900, and July 20800 Sales of 242.000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $21.00 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 5,360 units, which complies with the policy. The expected June 30 ending raw materials Inventory is 4,200 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 endina finished goods Inventory to equal 80% of the next month's expected unit sales. 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 16,640 units, which complies with the policy d. Each finished unit requires 0,50 hours of direct labor at a rate of $17 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.00 per direct labor hour. Depreciation of $21100 per month is treated as fixed factory overhead f. Sales representatives commissions are 8% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,200 9. Monthly general and administrative expenses include $14,000 administrative salaries and 0.7% 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) 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 $42.000. 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 $12.000 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 quarter. m. Equipment purchases of $132,000 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 aciministrative expense budoet. 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. Required 1 Required 2 Required 3 Required Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets Total current assets $ 0 Equipment, net 0 Total assets Liabilities and Equity Liabilities Budgeted Balance Sheet June 30, 2017 1 Assets Total current assets $ 0 0 Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity