The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUF ACTURING Estimated Balance Sheet March 31, 2017 Assets Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gros:s Accumul ated depreciatiorn Equipment, net Total assets $65, 000 437, T60 90, 200 308, 028 900, 988 630, 000 (165, 000) 465, 000 $ 1, 365, 988 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained eamings Total stockholders' equity $204, 500 27, 000 231, 500 515, 000 746, 500 350, 000 269, 488 619, 488 $ 1, 365, 988 Total liabilities and equity To prepare a master budget for April, May, and June of 2017, management gathers the following information a. Sales for March total 22,800 units. Forecasted sales in units are as follows: April, 22,800; May, 16,000; June, 23,000; and July 22,800. Sales of 255,000 units are forecasted for the entire year. The product's selling price is $24.00 per unit and its total product cost is $19.30 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 4,510 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,500 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 70% of the next month's expected unit sales. The March 31 finished goods inventory is 15,960 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of $11 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.20 per direct labor hour f. Sales representatives' commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is g. Monthly general and administrative expenses include $27,000 administrative salaries and 0.6% monthly interest on the long-term h. The company expects 20% of sales to be for cash and the remaining 80% on credit. Receivables are collected in full in the month Depreciation of $35,020 per month is treated as fixed factory overhead $4,500 note payable following the sale (none are collected in the month of the sale) Sales budget. (Round Budgeted unit price to 2 decimal places.) 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 Production budget ZIGBY MANUFACTURING Production Budget April, May, and June 2017 April May 23,000 June Next month's budgeted sales (units) Ratio of inventory to future sales 16,000 22,800 70% 70% 70% Required units of available production Units to be produced Raw materials budget. (Round per unit values to 2 decimal places.) 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 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May June Total Budgeted production (units) Total labor hours needed Budgeted direct labor cost Factory overhead budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 May June Total April Labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead Selling expense budget ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 May April June Budgeted sales Sales commissions General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgets 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 Sales on credit 20% 80% Total cash receipts from customers Current month's cash sales Collections of receivables ZIGBY MANUFACTURING 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 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 Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) 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