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The management of Zigby Manufacturing prepared the following bolance sheet for Moreh 31 . To prepare a master budget for April, May, and June, management gathers the following information! a. Sales for March totai 24,000 units, Budgeted soles in units follow April, 24,000 , May, 16,600, June, 22, 200, and July, 24,000 . The product's selling price is $31.00 per unit and as total product cost is $2640 per unit. b. Row matenals inventory consists solely of direct matedials that cost $20 per pound. Compary policy cals for a given monthis ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw matenals inventory as 4.705 pounds. The budgeted June 30 ending raw materials inventory is 5,100 pounds. Each finished unit requires 050 pound of diaect materials c. Company policy cails for a given month's ending finished goods inventory to equal 70% of the next monthis budgeted unit salos. The March 31 finished goods inventory is 16,800 units d. Each finished unit requires 0.50 hour of direct labor at a rate of $26 per hour e. The predetermined vanoble overhead rate is $3.80 per direct labor hour. Depreciation of $31,400 per month is the orily fixed factory overhead item. f. Sales commissions of 5% of sales are paid in the month of the sales. The sales manager's monthly salary is 54,100 9. Monthly general and administrative expenses include $25,000 for administrative solaries and 08%5 monthly interest on the iongterm note payable. h. The company budgets 30% of sales to be for cash and the remaining 70% on credit Credit sales are coilected in full in the monti following the sale (no credit sales are collected in the month of sale). i. All raw materials purchases are on credit, and accounts pavable are solelv tind to raw materials purchases. Raw matentials h. The company budgets 30% of sales to be for cash and the remairting 70% on creda. Credit sales ore collected in full in the morth following the sale (no credit sales are collectod in the month of sole). 1. All raw materials purchases are on credit, and accounts payable are solely tiect to raw materials purchases. Paw matenals purchases are fully paid in the next month (none are paid in the fnomth of purchase) 1. The minimum ending cash balance for all months is $51,000. If nocessary, the company botrows enough cash using a loan to rench the minimum. Loans require an interest payment of 18 at each month-end (bofore-ary repoyment) If the month-end prefiminary cash balance exceeds the minimum, the excess will be used to repay any loons k. Dividends of $21,000 are budgeted to be cleclared and paid in May 1. No cash payments for income taxes are budgeted in the second calendar quarter Income tax will be assessed at 35 s. in the quanter arnd budgeted to be paid in the third calendar quarter. m. Equipment purchases of $100,000 are budgeted for the last day of June. Required: Prepare the following budgets for the months of Apral, May, and June: 1. Sales budget. 2. Production budget. 3. Direct materials budget. 4. Direct-labor budget. 5. Factory overhed budget. 6. Selling expense budiget. 7. General and administrative expense budget. 8. 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 . bincome statement for entre second quarter (not monthly) 12. Budgeted balance sheet at June 30 . Complete this question by entering your answers in the tabs below. Sales budget. Complete this question by entering your answers in the tabs below. Production budget. Complete this question by entering your answers in the tabs below. Direct materials budget. (Round per unit values to 2 dedmal places,) Complete this question by entering your answers in the tabs below. Direct labor budget. (Round per unit values to 2 decimal places.) Complete this question by entering your answers in the tabs below. Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) Complete this question by entering your answers in the tabs below. Selling expense budget. Complete this question by entering your answers in the tabs below. General and administrative expense budget. Complete this question by entering your answers in the tabs below. 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.) Budgeted income statement for entire second quarter (not monthly). (Round your final answers to the nearest whole dollar)
