60.1K

Verified Solution

Link Copied!

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANIFACTURING Estimated Balance Sheet March 31, 2817 Assets Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross S 53,000 392,400 96,680 313,920 855,92e 626,000 163,900) 463,00e 1,318,920 Accumulated depreciation Equipment, net Total assets Liabilsties and Equity $204,809 25,000 229,800 Accounts payable Short-tere notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity 749,800 348,000 221,120 Total liabilities and equity s1,318,920 To prepare a master budget for April, May, and June of 2017, management gathers the following information a. Sales for March total 21.800 units. Forecasted sales in units are as follows April, 21.800, May 18,700. June, 21,000, and July 's seling pnice is $2250 per unit and its total product costis b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements Sales of 253000 units are forecasted for the entire year. The product $18.00 per unit The March 31 raw materials inventory is 4,830 units, which complies with the policy The expected June 30 ending raw materials inventory is 5.300 units Raw materials cost $20 per unit. Each finished unit requires 0 50 units of raw materials

Answer & Explanation Solved by verified expert

See Answer