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The management of Zigby Manufacturing prepared the following balance sheet for March 31 ZIGGY WWW.ACTURING Balance Sheet March Assets Cache $ 99,000 Liabilities Accounts receivable 456,900 Accounts payable Raw materials inventory 101,000 Loan payable Finished goods Inventory 402, 500 Lotere note payable Equipment 5 618,000 Evity Lossi Accumulated depreciation 459,000 Common stock Retained warnings Total assets 51152600 Total Habilities and equity $ 200,700 21.000 $ 730, 700 M4,000 797.00 To prepare a master budget for April May, and June, management gathers the following information a: Sales for March total 23.000 units Budgeted sales in units follow April, 23.000: May 19,000: June 18,800, and July, 23,000. The product's selling price is $29.00 per unit and its total product cost is $2500 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 5.050 pounds The budgeted June 30 ending raw materials inventory is 4500 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 70% of the next month's budgeted unit sales The March 31 finished goods inventory is 16,100 units d. Each finished unit requires 0 50 hour of direct laborat a rate of $24 per hout e. The predetermined variable overhead rate is $360 per direct labor hout Depreciation of $24.320 per month is the only fired factory overhead item f. Sales commissions of 10% of sales are paid in the month of the soles. The sales manager's monthly salary is $3.900 9. Monthly general and administrative expenses include $10,000 for administrative salaries and 8 monthly interest on the long term note payable les bocash and them a 70 credit sales are collected in full in the month Check my work g. Monthly general and administrative expenses include $10,000 for administrative salaries and 0 8 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) 1. All row 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 pold in the month of purchase). - The minimum ending cash balance for all months is $99.000 If necessary, the company borrows enough cash using a loan to reach the minimum Loans require an interest payment of teach month and (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 $19.000 are budgeted to be declared 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% in the quarter and 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 April. May, and June 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 recept 9. Schedule of cash payments for direct materials 10. Cash budget 11. Budgeted income statement for entre second quarter (not monthly 12. Budgeted balance sheet at June 30 Reg 1 Reg 2 Reg 3 Req 4 Reg 5 Req 6 Reg 7 Reg 8 to 10 Reg 11 Req 12 Sales budget. ZIGBY MANUFACTURING Sales Budgets April May June Budgeted sales units Selling price per unit Total budgeted sales Req2 > Reg! Reg 2 Reg 3 Reg 4 Reqs Req 6 Req 7 Reg 8 to 10 Reg 11 Reg 12 ces Production budget. ZIGBY MANUFACTURING Production Budget April May June Total Budgeted sales units 19.000 70% 18,800 70% 23,000 70% Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Units to produce Direct materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Materials Budget April May June Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April May June Total Units to produce Direct labor hours needed Cost of direct labor Factory overhead budget. (Round variable overhead rate values to 2 decimal places.) June Total ZIGBY MANUFACTURING Factory Overhead Budget April May Direct labor hours needed Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted foxed overhead Budgeted total factory overhead Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April May June Budgeted sales Sales commissions Req 1 Reg 2 Req3 Req 4 Reg 5 Req 6 Reg 7 Req 8 to 10 Req 11 Req 12 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses ZIBGY MANUFACTURING Schedule of Cash Receipts April S 667000S May 551,000 $ June 545 200 Sales Cash receipts from Cash sales Collections of prior period sales Total cash receipts 198 700 Schedule of Cash Payments for Direct Materials April Materials purchases $ 195,300 $ 203,000 $ Cash payments for Current period purchases Prior period purchases Total cash payments Cash Budget April May June Cash Budget April May June Beginning cash balance Total cash available Less Cash payments for Total cash payments Preliminary cash balance Ending cash balance Loan balanse os Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month $ 0 ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Book Hint Seling, general and administrative expenses References Total operating expenses Reg 8 to 10 Req 12 ) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Total assets Liabilities and Equity Liabbas Equity Total Liabilities and Equity

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