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The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 51,080 483,600 94,100 443,520 1,072,220 622,000 (161, eee) 461,000 $ 1,533,220 $ 211,400 23,000 234,400 515,000 749,480 346,000 437,820 783,820 $1,533,220 To prepare a master budget for April, May, and June of 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 5,100 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 The comman pynests 35% of sales to be for cash and the remaining 65% on credit Receivables are collected in full in the month inventory is 5,100 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials dellas inventory is 4./05 units, which complies with the policy. The expected June 30 ending raw materials 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. 1. 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 expect following the sale none are collected in the month of the sale). o saves to be for cash and the remaining 65% on credit Receivables are collected in full in the month 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. If 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 I. 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 (not for each month separately). 10. Budgeted balance sheet. Complete this question by entering your answers in the tabs below. Required 5 Required 6 Required 7 Required Required 9 Required 10 Required 1 Required 2 Required 3 Required 4 wwwycled 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 Requir Sales budget. (Round Budgeted unit price to 2 decimal places.) ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 Budgeted Budgeted Unit Sales Unit Price April 2017 24.000 31.00 May 2017 16,600 31.00 June 2017 22.2001 31.00 Totals for the second quarter 62,800 Budgeted Sales Dollars 5 744,000 514,600 688,200 $ 1,946,800 Required 2 > e Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 R Raw materials budget. (Round per unit values to 2 decimal places.) June ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 April May Production budget (units) Materials requirements per unit Materials needed for production Budgeted ending inventory Total materials requirements (units) Beginning inventory Materials to be purchased Material price per unit Budgeted raw material purchases 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 Direct labor budget. (Round per unit values to 2 decimal places June Total ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May Budgeted production (units) Labor requirements per unit (hours) Total labor hours needed Direct labor rate (per hour) Budgeted direct labor cost Required 3 Required 5 > e 9 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 Req Factory overhead budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 April May June Total 7 Labor hours needed Variable factory overhead rate Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead 11 Prey Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with Calculation of Cash receipts from customers April May June Total budgeted sales Cash sales 35% Sales on credit 859 Total cash receipts from customers April May June Current month's cash sales Collections of receivables ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 Beginning cash balance Cash receipts from customers Total cash available Cash payments for Raw materials Direct labo 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 can be April May June 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 TTTTT Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Budgeted income statement for the entire second quarter (not for each month separately). nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Sales 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 Required 8 Required 10 > Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) , ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets 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

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