The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash $ 59,000 487,500 93,010 Accounts receivable Raw materials inventory Finished goods inventory Total current assets 433,00e 1,072,510 638,000 169,000 Equipment, gross Accumulated depreciation Equipment, net 469,000 $ 1,541,510 Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities $ 215,410 31,000 246,410 530,000 776,410 354,000 411,100e 765,100 Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 1,541,510 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: Ap, 25,000; May, 17,000; June, 22,400; and July 25,000. Sales of 259,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $2165 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 4,650 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,900 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 80% of the next month's expected unit sales The March 31 finished goods inventory is 20,000 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of $15 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.60 per direct labor hour Depreciation of $39,710 per month is treated as fixed factory overhead f. Sales representatives, commissions are 5% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,900 g. Monthly general and administrative expenses include $34,000 administrative salaries and 0.8% monthly interest on the long-term note payable h. The company expects 25% of sales to be for cash and the remaining 75% on credit. Receivables are collected in full in the month Prey of 18 Next> h. The company expects 25% of sales to be for cash and the remaining 75% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale) i. 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 $98,000. 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 $29,000 are to be declared and paid in May I. 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 $149,000 are budgeted for the last day of June Required Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the second calendar quarter, except as otherwise noted below. (Round calculations up to the nearest whole dollar, except for the amount of cash sales, which should be rounded down to the nearest whole dollar.) 1. Sales budget. 2. Production budget. 3. Raw materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Cash budget. 9. Budgeted income statement for the entire second quarter (not for each month separately). 10. Budgeted balance sheet. Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Sales budget. (Round Budgeted unit price to 2 decimal places.) ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 Budgeted Budgeted Budgeted Unit Sales |Unit Price Sales Dollars 25,000$ 26.00$650,000 April 2017 17,000 May 2017 26.00 442,000 22,400 26.00 582,400 June 2017 64,400 S 1,674,400 Totals for the second quarter Required 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Production budget ZIGBY MANUFACTURING Production Budget April, May, and June 2017 Total May April June Next month's budgeted sales (units) 22,400 25,000 17,000 80% 80% 80% Ratio of inventory to future sales 13,600 udgeted ending inventory (units) 17,920 20,000 17,000 udgeted units sales for month 25,000 22,400 38,600 Required units of available production 34,920 42,400 Beginning inventory (units) 20,000 13,600 17,920 21,320 Units to be produced 18,600 24,480 64,400 Required 3 Required 1 Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Raw materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 Total May June April 18,600 Production budget (units) 21,320 24,480 Materials requirements per unit 0.50 0.50 0.50 Materials needed for production 9,300 10,660 12,240 5,330 5,990 Budgeted ending inventory 6,120 14,630 Total materials requirements (units) 16,780 18,230 Beginning inventory 4,650 5,330 6,120 Materials to be purchased 9,980 11.450 12,020 33,450 Material price per unit 20S 20S 20S 20 $ 199,600 $229,000$ 240,400 $ 669.000 Budgeted raw material purchases Required 4 KRequired 2 Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4-Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April Total May June 18,600 21,320 Budgeted production (units) 24,480 abor requirements per unit (hours) 0.50 0.50 0.50 10,660 Total labor hours needed 9,300 12,240 32,200 15 $ 15 $ 15S irect labor rate (per hour) 15 $139,500 $159,900$ 183,600 $ 483,000 Budgeted direct labor cost Required 5 Required 3 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Factory overhead budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 Total May April June 10,660 Labor hours needed 9,300 12,240 4.60 ariable factory overhead rate 4.60 $ 4.60 $ 42,780 $ 49,036 $ Budgeted variable overhead 56,304$148,120 39,710 39,710 39,710 Budgeted fixed overhead 119,130 82,490 $ 88,746 $ 96,014 $ 267,250 Budgeted total overhead Required 6 Required 4 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6-Required 7 Required 8 Required 9 Required 10 Selling expense budget ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 Total May April June $ 650,000442,000 582,400 Budgeted sales 5% 5% Sales commission percent 5% 32,500 $ 83,720 Sales commissions 22,100 $29,120$ 4,900 4,900 14,700 Sales salaries 4,900 37,400 $ 27,000 $ 34,020 $ 98,420 otal budgeted selling expenses Required 7 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Calculation of Cash receipts from customers: ApriMay June 650,000442,000 582,400 Total budgeted sales Cash sales 25% 162,500 110,500 145,600 75% $ 487,500|$ 331,500|$ 436,800 Sales on credit Total cash receipts from customers April May June Current month's cash sales $ 215,410 Collections of receivables ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 May April June Beginning cash balance 59,000$204,360$299,584 Cash receipts from customers 650,000 598,000 477,100 Total cash available 709,000 802,360 776,684 Cash payments for: 199,600 215,410 Raw materials 22,900 Direct labor 139,500 159,900 183,600 Variable overhead 42,780 49,036 56,304 29,120 32,500 22,100 Sales commissions Sales salaries 4,900 4,900 4,900 34,000 34,000 34,000 29,000 4,240 4,240 4,240 310 115 149,000 335,179 Total cash payments 473,640 651,776 Preliminary cash balance Ending cash balance Loan balance May April June Loan balance Beginning of month Additional loan (loan repayment) Loan balance End of month Required 9 Required 7 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Req Budgeted income statement for the entire second quarter (not for each month separately). (Round your nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Operating expenses Total operating expenses Required 8 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 Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity Required 9 Required 10