To prepare a master budget for April, May and 2017, management gathers the following information: a. Sales for March total 24,000 units. Forecasted sales in units are as follows: April, 24,000; May, 16,600, June, 22,200, and July, 24,000. Sales of 251,000 units are forecasted for the entire year. The product's selling price is $31.00 per unit and its total product cost is $26.40 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 4.705 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5100 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 70% of the next month's expected unit sales. The March 31 finished goods inventory is 16,800 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $26 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.80 per direct labor hour. Depreciation of $31.400 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 $4.100 g. Monthly general and administrative expenses include $25.000 administrative salaries and 0.8% monthly interest on the long-term note payable. h. The company expects 35% of sales to be for cash and the remaining 65% 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. J. The minimum ending cash balance for all months is $99.000. 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) the ending cash balance exceeds the minimum, the excess will be applied to repaying the short term notes payable balance k Dividends of $21,000 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 $141.000 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 inot for each month separately) 10. Budgeted balance sheet e ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 June 744,000 689 201 Beginning cash balance Cash receipts from customers Total cash available Cash payments for Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Dividends Loan interest Long-term note interest Purchases of equipment Total cash payments Preliminary cash balance Additional loan doan repayment) Ending cash balance Loan balance April June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 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 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Budgeted income statement for the entire second quarter (not for each month separately). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 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 Income tax Net income Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets L 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 current liabilities Long-term note payable Stockholders' Equity Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Equity -owry overead budget. 5. Selling expense budget 7. General and administrative expense budget. B. 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 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Production budget. Total ZIGBY MANUFACTURING Production Budget April, May, and June 2017 April May Next month's budgeted sales (units) 16,600 22,200 Ratio of inventory to future sales 70% 70% Budgeted ending inventory (units) 11,620 15.540 Budgeted units sales for month 24,000 16,600 Required units of available production 35,620 32,140 Beginning inventory (units) (16,800) (11,620) Units to be produced 18,820 20,520 June 24,000 70% 16,800 22.200 39.000 (15,540) 23,450 62.800 ect labor budget tory overhead budget ling expense budget. meral and administrative expense budget. sh budget dgeted income statement for the entire second quarter (not for each month sej udgeted balance sheet Complete this question by entering your answers in the tabs below. Lequired 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 R Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May June Total Budgeted production (units) 18,820 20,520 23.460 Labor requirements per unit (hours) 0. 50 0 . 50 0 .50 Total labor hours needed 9,410 10,260 11.430 3 1,100 Direct labor rate (per hour) 1526 526 526 526 Budgeted direct labor cost $ 244,660 5 266 760 5 297 180 s 808,600 LAULUU UULIC except for the amount of cash sales, which should be rounded down to the nearest whole di 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 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Re Factory overhead budget. (Round per unit values to 2 decimal places.) Total Labor hours needed Variable factory overhead rate Budgeted variable overhead Budgeted fored overhead Budgeted total overhead ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 April May 9.4107 10.260 s 3.80 3.80 $ s 35,758 S 38.988 $ 31.400 31.400 S 67.158 S 70.388 S June 11.430 3.80 43,434 S 31,400 74,834 5 118,180 94.200 212,380 raw materiais budget Direct labor budget Factory overhead budget Selling expense budget General and administrative expense budget. ..Cash budget 1. Budgeted income statement for the entire second quarter (not for each month separately). 0. Budgeted balance sheet 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 Regu Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 April May S 744.0005 514,600 Total June 688,200 S Budgeted sales Sales commission percent Sales commissions Sales salaries Total budgeted selling s S 37.200 S 4,100 41,300 25,730 S 4.100 29,830 S 34 410 4100 38,510 97.340 12.300 109.540 $ $ 5