Will give good review

3) To conserve cash, the purchasing manager has asked to reduce April and May's ending raw materials inventory to equal 30% (down from 50%) of next month's materials requirements. June ending raw materials inventory will remain unchanged (same as on connect). Note - This % changes the calculation of required ENDING INVENTORY of raw material (row 4 of the table) and DOES NOT change the raw material required per unit of production (row 2). This table is completed similarly to the budget table in connect. Additionally, the purchase department has negotiated a 5% discount on raw material if they purchases exceed 10,000 pounds in any given month. The 5% will be only for the pounds purchased over 10,000. [Pounds of material purchased - 10,000 pounds x $20 per pound x 5%) Calculate the Discount for each month and calculate the "net" purchase amount. ZIGBY MANUFACTURING Revised Raw Materials Budget April May June Total Production budget (units) Materials requirements per unit (unchanged from connect Materials needed for production Budgeted ending inventory Total materials requirements (units) Beginning inventory Materials to be purchased Material price per unit Raw Material purchases before Discount Discount (5% of purchases exceeding 10,000 lbs Budgeted raw material purchasesZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash $ 42,000 Accounts receivable 364,000 Raw materials inventory 107,200 Finished goods inventory 349,440 Total current assets 862,640 Equipment 604,000 Accumulated depreciation (152,000) Equipment, net 452,000 Total assets $1,314.540 Liabilities and Equity Accounts payable $ 211,300 Shortterm notes payable 14,000 Total current liabilities 225,300 Longterm note payable 510,000 Total liabilities 735,300 Common stock 337,000 Retained earnings 242,340 Total stockholders' equity 579,340 Total liabilities and equity $1,314,640 Production budget (units) 21,440 9 21,040 9 20,820 9 Materials requirements per unit 0.50 o 0.50 0 Materials needed for production 10,720 10,410 Budgeted ending inventory 5,260 a 4,200 0 Total materials requirements (units) 15,980 14,610 Beginning inventory 5,360 a 5,205 9 Materials to be purchased 10,620 a 10,465 0 9,405 a 30,490 Material price per unit $ 20 0 $ 20 0 $ 20 0 $ Budgeted raw material purchases $ 212,400 209,300 $ 188,100 $ 609,800