They 70% on The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 To prepare a master budget for April May and June of 2017, management gothers the following information: Sales for March total 20,800 units Forecasted sales in units are as follows: April, 20.800, May 21,600, June, 20,900, and July, 20,000. Sales of 242.000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $21.00 per Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's material requirements. The March 31 raw materials inventory is 5,380 units, which complies with the policy. The expected 4.200 units Raw materials cost $20 per unit. Each finished unt requires 0.50 units of raw materials Company policy calls for a given month's ending finished goods inventory to equal 80% of the next mort's expected salesThe March 31 Grished goods inventory is 16,640 units, which comes win the policy Each finished unit requires 0.50 hours of direct labor at a rate of $17 per hour. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is 53.00 per direct labor hour. Depreciation of $21.100 per month is treated as fred d factory overhead Sales representatives commissions are 8% of sales and are paid in the month of the sale. The sales manager's monthly salary is $3,200 Monthly general and administrative expenses include $14,000 administrative and 0.7% collected in the month of these Al raw materials purchases are on credit, and no payable vise from any other transactions. One mont's raw materials purchases are fully paid in the next The minimum ending cash balance for all months is $42.000. 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% each month and before any will be applied to repaying the short-term notes payable balance I , he 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 - Equipment purchases of $132.000 are budgeted for the last day of June Required: Prepare the following budgets and other financial information as required AB budgets and other financial Information should be prepared for the second 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 materiale budget 4. Direct labor budget 5. Factory overhead budget 6. Selling expense budget 7. General and administrative expense budget 8. Cash budget 9. Budpeted 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. General and administrative expense budget The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 To prepare a master budget for April May and June of 2017, management Gathers the following information: Sales for March total 20,800 units Forecasted sales in units are as follows: April 20.800, May 21,600, June, 20.900, and July, 20,000. Sales of 242.000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $21.00 per Company policy calls for a given month's ending raw materials inventory to equal 50% of the next montes materials requirements. The March 31 raw materials inventory is 5.360 units, which complies with the policy. The expected 4.200 units Raw materials cost $20 per unit. Each finished unt requires 0.50 units of raw materials Company policy calls for a given month's ending finished goods inventory to next month's expected unt sales. The March 31 nished goods inventory is 16,640 units, which complies with the policy Each finished unit requires 0.50 hours of direct laborat a rate of $17 per hour. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.00 per direct labor hour. Depreciation of $21.100 per month s treated as feed factory overhead Sales representatives commissions are 8% of sales and are paid in the month of these. The sales manager's monthly salary is $3,200 and administrative expenses include $14,000 administrative salaries and 0.7% monthly interest on the long-term note payabile. credit . Recorders are collected in tal in the month following the sale (none are Al raw materials purchases are on credit, and no payable vise from any other transactions. One mont's raw materials purchases are fully paid in the next The minimum ending cash balance for all months is $42,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum 1. If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance 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 -Equipment purchases of $132.000 are budgeted for the last day of June Required: Prepare the following budgets and other financial information as required AB budgets and other financial Information should be prepared for the second 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 material 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. General and administrative expense budget. The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash $ 42,000 Accounts receivable 364,000 Raw materials inventory 107,200 Finished goods 349,440 inventory Total current assets 862,640 Equipment, gross 604,000 Accumulated (152,000) depreciation Equipment, net 452,000 Total assets $1,314,640 Liabilities and Equity Accounts payable $ 211,300 Short-term notes payable 14,000 Total current liabilities 225,300 Long-term note payable 510,000 Total liabilities 735,300 Common stock 337,000 Retained earnings 242,340 Total stockholders' equity 579,340 Total liabilities and $1,314,640 equity To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 20,800 units. Forecasted sales in units are as follows: April, 20,800, May 21,600: June, 20,900, and July, 20,800. Sales of 242,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $21.00 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 5,360 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,200 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 16,640 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of $17 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.00 per direct labor hour. Depreciation of $21,100 per month is treated as fixed factory overhead. f. Sales representatives commissions are 8% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,200. 9. Monthly general and administrative expenses include $14,000 administrative salaries and 0.7% 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), L. 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. 1. The minimum ending cash balance for all months is $42,000. 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 $12,000 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 40% in the quarter and paid in the third calendar quarter. m. Equipment purchases of $132,000 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 Requir... Requir... Requir... Requir... Requir... Requir... Requir... Requir.. Requir... 1 2 3 4 5 6 7 8 10 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