ZIGBY MANUFACTURING Balance Sheet March 31 Assets Liabilities and Equity Cash $ 48, 000 Liabilities Accounts receivable 413, 280 Accounts payable $ 241, 200 Raw materials inventory 118, 200 Loan payable 12,000 Finished goods inventory 390, 648 Long-term note payable 600,000 $ 853, 200 Equipment $ 720,000 Equity Less: Accumulated depreciation 180,000 540,000 Common stock 402,000 Retained earnings 254, 928 656,928 Total assets $ 1, 510, 128 Total liabilities and equity $ 1, 510, 128 To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 24,600 units. Budgeted sales in units follow: April, 24,600; May, 23,400; June, 24,000; and July, 24,600. The product's selling price is $24.00 per unit and its total product cost is $19.85 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% of the next month's direct materials requirements. The March 31 raw materials inventory is 5,910 pounds. The budgeted June 30 ending raw materials inventory is 4,800 pounds. Each finished unit requires 0.50 pound of direct materials. c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 finished goods inventory is 19,680 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined variable overhead rate is $2.70 per direct labor hour. Depreciation of $24,000 per month is the only fixed factory overhead item. f. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $3,600. g. Monthly general and administrative expenses include $14,400 for administrative salaries and 0.9% monthly interest on the long- term note payable. h. The company budgets 30% of sales to be for cash and the remaining 70% 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 $48,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 1% at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $12,000 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. m. Equipment purchases of $120.000 are budgeted for the last dav of June.Required: 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. 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Reg 5 Req 6 Reg 7 Req 8 to 10 Req 11 Req 12 Sales budget. ZIGBY MANUFACTURING Sales Budgets April May June Budgeted sales units 24,600 $ 23,400 Selling price per unit Total budgeted sales $ 0 $ 0 $ Req 1 Req 2 >Production budget. ZIGBY MANUFACTURING Production Budget April May June Total Budgeted sales units Next period budgeted sales units 23,400 24,000 24,600 Ratio of inventory to future sales 80% 80% 80% Desired ending inventory units Total required units Units to produceZIGBY MANUFACTURING Direct Materials Budget April May June Units to produce Materials required per unit (pounds) Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchasesReq 1 Req 2 Req 3 Req 4 Req 5 Reg 6 Req 7 Req 8 to 10 Req 11 Req 12 Direct labor budget. Note: Round per unit values to 2 decimal places. ZIGBY MANUFACTURING Direct Labor Budget April May June Total Units to produce Direct labor hours needed 0 Cost of direct laborZIGBY MANUFACTURING Selling Expense Budget April May June Budgeted sales Sales commissions General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter $0 when applicable. Do not leave cells blank Show lessa ZIBGY MANUFACTURING Schedule of Cash Receipts April May June Sales S 590,400 $ 561,600 $ 576,000 Cash receipts from Cash sales Collections of prior period sales Total cash receipts S 0 $ Schedule of Cash Payments for Direct Materials April May June Materials purchases S 237.600 $ 241,800 $ 218,400 Cash payments for Current period purchases Prior period purchases Total cash payments S o SApril May June Beginning cash balance Total cash available Less: Cash payments for: Total cash payments 0 Preliminary cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of monthBudgeted income statement for entire second quarter (not monthly). Note: 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 Budgeted balance sheet at June 30. Note: Round your final answers to the nearest whole dollar. ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Total assets Liabilities and Equity Liabilities EquityTotal Liabilities and Equity . Add: Beginning inventory units . Add: Desired ending inventory . Less: Beginning inventory units . Less: Desired inventory units . Budgeted units sales for month . Materials required per unit (pounds)Direct labor cost per hour . Direct labor hours required per unit . Material price per unit Sales commission percent . Sales salaries . Total selling expenses . Administrative salaries . Depreciation expense . Equipment purchases . Interest on long-term note . Land purchase . Additional loan (loan repayment) from