The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017:

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017
Assets
Cash	$	53,000
Accounts receivable		392,400
Raw materials inventory		96,600
Finished goods inventory		313,920
Total current assets		855,920
Equipment, gross		626,000
Accumulated depreciation		(163,000	)
Equipment, net		463,000
Total assets	$	1,318,920
Liabilities and Equity
Accounts payable	$	204,800
Short-term notes payable		25,000
Total current liabilities		229,800
Long-term note payable		520,000
Total liabilities		749,800
Common stock		348,000
Retained earnings		221,120
Total stockholders equity		569,120
Total liabilities and equity	$	1,318,920

To prepare a master budget for April, May, and June of 2017, management gathers the following information:

1. Sales for March total 21,800 units. Forecasted sales in units are as follows: April, 21,800; May, 18,700; June, 21,000; and July, 21,800. Sales of 253,000 units are forecasted for the entire year. The products selling price is $22.50 per unit and its total product cost is $18.00 per unit.
2. 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 4,830 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,300 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials.
3. 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 17,440 units, which complies with the policy.
4. Each finished unit requires 0.50 hours of direct labor at a rate of $9 per hour.
5. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.00 per direct labor hour. Depreciation of $30,750 per month is treated as fixed factory overhead.
6. Sales representatives commissions are 8% of sales and are paid in the month of the sales. The sales managers monthly salary is $4,300.
7. Monthly general and administrative expenses include $25,000 administrative salaries and 0.7% monthly interest on the long-term note payable.
8. The company expects 20% of sales to be for cash and the remaining 80% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale).
9. 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.
10. The minimum ending cash balance for all months is $53,000. 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.
11. Dividends of $23,000 are to be declared and paid in May.
12. 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.
13. Equipment purchases of $143,000 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.

ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 Budgeted Budgeted Budgeted Unit Sales Unit Price Sales Dollars April 2017 May 2017 June 2017 Totals for the second quarter ZIGBY MANUFACTURING Production Budget April, May, and June 2017 April May Next month's budgeted sales (units) 18,700 18,700 21,000 Ratio of inventory to future sales 80%. June 21,800 80% 80% Required units of available production Units to be produced 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 ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May AP June Total Budgeted production (units) Total labor hours needed Budgeted direct labor cost 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 ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 April May June Budgeted sales Sales commissions ZIGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April, May, and June 2017 April May June Total budgeted G&A expenses Calculation of Cash receipts from customers: April May June Total budgeted sales Cash sales 20% Sales on credit 80% Total cash receipts from customers June Current month's cash sales Collections of receivables LICUI IVAIVUIACIUN Cash Budget April, May, and June 2017 April May June Beginning cash balance Total cash available Cash payments for: Total cash payments Preliminary cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Operating expenses Total operating expenses ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets Total current assets Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity