The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2013 2 IGBY MANUFACTURING Balinaloa Balance Sheet Assets 31, 2019 Cash Accounts receivable Ikaw materials inventory Pinished goods inventory Total current assets Equipment Accumulated depreciation Equipment, nel Talal asala Liabilities and Equity Accounts payable Short-tern notes payable Total current liabilities Long-term nate payabla Total 1.abil.t. 5 80,000 364,000 96,000 364,800 904,00 610,000 (155.000) 455,000 $1,359,00 6 195,500 17.000 212,500 510,000 722,500 340,000 292.300 637,300 $1,359,800 Common stock Retnined earnings Tatal atockholders' equity Total liabilitiea and equity To prepare a master budget for April, May, and June of 2019, management gathers the following information. a. Sales for March total 20,000 units. Forecasted sales in units are as follows: April, 20,000; May. 19.000; June 19,500; and July 20,000. Sales of 245,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $22.80 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 4,800 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,500 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 80% of the next month's expected unit sales. The March 31 finished goods inventory is 16,000 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct laborat a rate of 520 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3 20 per direct labor hour. Depreciation of $23,400 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 manager's monthly salary is $3,500 g. Monthly general and administrative expenses include $17,000 administrative salaries and 0,9% 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). 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 $45,000. 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 $15,000 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 35% in the quarter and paid in the third calendar quarter. m Fruinment nurchasee of $135 000 are deter for the last day of luna Prey 1 of 1 III Next 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 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April, May, and June 2019 April May June Total budgeted G&A expenses