The management of Zigby Manufacturing prepared the followmg balance sheet for March 31. 2163'! HAHUFACTUIIIHE Balance Sheet Harch 31 Assets Liabilities and Equity Cash 5 59,666 Liabilities Accounts receivable 396,666 Accounts payable S 138,366 Flaw materials inventory 86,666 Loan payable 19,666 Finished goods inventory 348,486 Long-term note payable 566,666 $ 593,366 Equipment 5 614,666 Equity Less: Accumulated depreciation 15?,666 45?,666 Common stock 342,666 Retained earnings 311,386 653,386 Total assets $ 1,351,933 Total liabilities and equity 5 1,351,333 To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 18,000 units. Budgeted sales in units follow: April, 18,000; May, 11000; June, 20,300; and July, 18,000. The products selling price Is $31.00 per unit and Its total product cost is $24.20 per unit b. Raw materials Inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given month's ending materials Inventory to equal 50% ofthe next month's direct materials requirements. The March 31 raw materials inventory is 4,300 pounds. The budgeted June 30 ending ravi.r materials inventory is 4,700 pounds. Each nished unit requires 0.50 pound ofdirect materials. c. Company policy calls for a given month's ending nished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 nished goods Inventory is 14,400 units. :1. Each nished unit requires 0.50 hour of direct labor at a rate of $22 per hour. 9. The predetermined variable overhead rate is $3.40 per direct labor hour. Depreciation of $271850 per month is the only xed factory overhead item. 1'. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary Is $3,700. 9. Monthly general and administrative expenses include $19,000 for administrative salaries and 0.6% monthly interest on the long term note payable. h. The company budgets 30% of sales to be for cash and the remaining 30% on credit Credit sales are collected In full in the month following the sale {no credit sales are collected In the month of sale). I. All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid In the next month {none are paid in the month of purchase}. J. The minimum ending cash balance for all months Is $69,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an Interest payment 011% at each monthend {before any repayment}. If the monthend preliminary cash balance exceeds the minimum, the excess Will be used to repay any loans. k. Dividends of $13,000 are budgeted to be declared and paid in May. I. No cash payments for income taxes are budgeted in the second calendar quarter. Income tax Will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter. n1. Equipment purchases of $100,000 are budgeted for the last day of June. Required: Prepare the following budgets for the months of April, May, and June: 1. Sales budget. 2. Production budget. 3. Direct materials budget 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget 3. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget. 11. Budgeted income statement for entire second quarter {not monthly]. 12. Budgeted balance sheet at June 30. Complete this queslion by enterilg 1your answer!- in the tabs below. Reql u\" Reqstojm Reqlz Sales budget. Budgeted sales units Selling mice per unit Total budgeted sales Req 1 Reg 2 Req 3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 to 10 Req 11 Req 12 Production budget. ZIGBY MANUFACTURING Production Budget April May June Total Budgeted sales units Calculation of desired ending inventory Next period budgeted sales units 17,000 20,700 18,000 Ratio of inventory to future sales 80% 80% 80% Total required units Units to produce Req 1 Req 2 Req 3 Reg 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Raw materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Materials Budget April May June Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases Req 1 Req 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 to 10 Req 11 Req 12 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April May June Total Units to produce Direct labor hours needed Cost of direct labor Req 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 to 10 Req 11 Req 12 Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April May June Total Direct labor hours needed Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead \fReq 1 Req 2 Req 3 Reg 4 Req 5 Reg 6 Reg 7 Req 8 to 10 Req 11 Req 12 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses Req 1 Req 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req & to 10 Req 11 Req 12 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Show less & ZIBGY MANUFACTURING Schedule of Cash Recelpte April May June Sales S 658,000 S 527,000 841,700 Cash receipts from Cash sales Collections of prior period sales Total cash receipts Schedule of Cash Payments for Direct Materials Materials purchases S 185,800 S 192,500 186,700 Cash payments for Current period purchases Prior period purchases Total cash payments Cash Budget April May June Beginning cash balance Total cash available Less: Cash payments for: Total cash payments Preliminary cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month S Req 7 Req 11 >Req 1 Req 2 Reg 3 Reg 4 Req 5 Req 6 Reg 7 Reg 8 to 10 Req 11 Req 12 Budgeted income statement for entire second quarter (not monthly). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses Req 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 to 10 Req 11 Reg 12 Budgeted balance sheet at June 30. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Total current assets Equipment, net Total assets Liabilities and Equity Liabilities Bank loan payable 0 Total current liabilities Equity Total Equity Total Liabilities and Equity