The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 2015:

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015
Assets
Cash	$	46,000
Accounts receivable		386,925
Raw materials inventory		96,290
Finished goods inventory		327,831
Total current assets		857,046
Equipment, gross		612,000
Accumulated depreciation		(156,000)
Equipment, net		456,000
Total assets	$	1,313,046
Liabilities and Equity
Accounts payable		196,190
Short-term notes payable		18,000
Total current liabilities	$	214,190
Long-term note payable		506,000
Total liabilities		720,190
Common stock		341,000
Retained earnings		251,856
Total stockholders equity		592,856
Total liabilities and equity	$	1,313,046

To prepare a master budget for April, May, and June of 2015, management gathers the following information.

a.	Sales for March total 20,100 units. Forecasted sales in units are as follows: April, 20,100; May, 18,900; June, 19,700; July, 20,100. Sales of 246,000 units are forecasted for the entire year. The products selling price is $27.50 per unit and its total product cost is $23.30 per unit.
b.	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 4,815 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,600 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials.
c.	Company policy calls for a given months ending finished goods inventory to equal 70% of the next months expected unit sales. The March 31 finished goods inventory is 14,070 units, which complies with the policy.
d.	Each finished unit requires 0.50 hours of direct labor at a rate of $21 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 $25,440 per month is treated as fixed factory overhead.
f.	Sales representatives commissions are 6% of sales and are paid in the month of the sales. The sales managers monthly salary is $3,600.
g.	Monthly general and administrative expenses include $18,000 administrative salaries and 0.5% 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 is collected in the month of the sale).
i.	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.
J.	The minimum ending cash balance for all months is $46,000. 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 $16,000 are to be declared and paid in May.

l.	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 $136,000 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:

ZIGBY MANUFACTURING
Production Budget
April, May, and June 2015
	April	May	June	Total
Next month's budgeted sales (units)	18,900	19,700	20,100
Ratio of inventory to future sales	70%	70%	70%
Budgeted ending inventory (units)	13,230	13,790	14,070
Budgeted units sales for month	20,100	18,900	19,700
Required units of available production	33,330	32,690	33,770
Beginning inventory (units)	14,070	13,230	13,790
Units to be produced	19,260	19,460	19,980	58,700

ZIGBY MANUFACTURING
Raw Materials Budget
April, May, and June 2015
	April	May	June	Total
Production budget (units)	19,260	19,460	19,980
Materials requirements per unit	0.50	0.50	0.50
Materials needed for production	9,630	9,730	9,990
Budgeted ending inventory	4,865	4,995	4,600
Total materials requirements (units)	14,495	14,725	14,590
Beginning inventory	4,815	4,865	4,995
Materials to be purchased	9,680	9,860	9,595	29,135
Material price per unit	$20	$20	$20	$20
Total cost of direct material purchases	$193,600	$197,200	$191,900	$582,700

ZIGBY MANUFACTURING
Factory Overhead Budget
April, May, and June 2015
	April	May	June	Total
Labor hours needed	9,630	9,730	9,990
Variable factory overhead rate	3.00	3.00	3.00
Budgeted variable overhead	$28,890	$29,190	$29,970	$88,050
Budgeted fixed overhead	25,440	25,440	25,440	76,320
Budgeted total overhead	$54,330	$54,630	$55,410	$164,370

ZIGBY MANUFACTURING
Selling Expense Budget
April, May, and June 2015
	April	May	June	Total
Budgeted sales	$552,750	$519,750	$541,750
Sales commission percent	6%	6%	6%
Sales commissions	$33,165	$31,185	$32,505	$96,855
Sales salaries	3,600	3,600	3,600	10,800
Total selling expenses	$36,765	$34,785	$36,105	$107,655

MISSING PRELIMINARY CASH BALANCE FOR COLUMN #1 AND ADDITIONAL LOAN (LOAN PAYMENT) FOR COLUMN #3

1. Sales budget. ZIGBY MANUFACTURING Sales Budget April, May, and June 2015 Budgeted Unit Budgeted Unit Budgeted Total 552,750 519,750 541,750 ,614,250 Sales Price Dollars April 2015 May 2015 June 2015 Totals for the quarter 20,100$ 18,900 19,700 58,700 27.50 27.50 27.50 1. Sales budget. ZIGBY MANUFACTURING Sales Budget April, May, and June 2015 Budgeted Unit Budgeted Unit Budgeted Total 552,750 519,750 541,750 ,614,250 Sales Price Dollars April 2015 May 2015 June 2015 Totals for the quarter 20,100$ 18,900 19,700 58,700 27.50 27.50 27.50