The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Accounts receivable Ravw materials inventory Finished goods inventory Total cument assets 438.750 Accumulated depreciation 158,000 Total assets Liabilities and Equity Short-tem notes pay able Total current liabilities Long-tem note payable Total stockholders' equity 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 19,500 units. Forecasted sales in units are as followS: April, 19,500; May, 17,100; June, 21,300; and July, 19,500. Sales of 248,000 units are torecasted tor the entire year. The product's selling 5 1.416,410 price is $30.00 per unit and its total product cost is $24.60 per unit b. Company policy calls tor 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 4.395 units, which complies with the policy The expected June 30 ending raw materials inventory is 4,800 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials C Company policy calls tor a given month's ending finished goods inventory to equal 80% ot the next month's expected unit sales. The March 31 finished goods inventory is 15,600 units which complies with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of $23 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.40 per direct labor hour. Depreciation of $27,020 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 7% of sales and are paid in the month of the sales. The sales managers monthly salary is $3,800 g. Monthly general and administrative expenses include $20,000 administrative salaries and 0.5% 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 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 mont J. The minimum ending cash balance for all months is $48.000. It 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 $18,000 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 $138,000 are budgeted tor 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 9. Budgeted income statement for the entire second quarter (not for each month separately) Required 1Required 2 Required 3 Required 4 Required 5 Requir Sales budget. (Round Budgeted unit price to 2 declmal places.) ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 Apil 2017 May 2017 June 2017 Totals for the second quarter Unit Sales Unit Price Sales Dollars 19,500 30.00585,000 513,000 639,000 1.737.000 17,100 21,300 57.900 30.00 30.00 ZIGBY MANUFACTURING Production Budget April, May, and June 2017 June Total 21,300 80% 17,040 17,100 34,140 13,680 20,460 Next month's budgeted saes (units) Ratio of inventory to future sales 17,100 80% 13,680 19,500 33,180 15,600 17,580 19,500 80 15,600 21,300 36,900 17,040 19,860 udgeted ending inventory (units) udgeted units sales for month Raquired units of available production eginning inventory (units) Units to be produced 57.900 ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 April May June Total Production budget (units) aterials requirements per unit Materials needed for production 4.965 4.800 udgeted ending inventory Total materials requirements (units) Beginning inventory Materials to be purchased Material price per Budgeted raw material purchases 5,115 4,395 5,115 4.965 29,355 20 $ 190,200 201,600195.300 507.100 9,510 10.080 9.765 unit 20 $ Budgeted income statement for the entire second quarter (not for each month separate the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Sales commissions Sales salaries General administrative salaries Long-term note interest Bank loan interest expense Total operating expenses Income before taxes ncome tax income Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30. 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Liabilities Accounts payable Bank loan payable Income taxes payable Total curent liabilities note payable Stockholders' Equity Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Equity