Question

Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash 43,000 Accounts receivable 432,900 Raw materials inventory 86,198 Finished goods inventory 387,168 Total current assets 949,266 Equipment, gross 606,000 Accumulated depreciation (153,000) Equipment, net 453,000 Total assets $1,402,266 Liabilities and Equity Accounts payable $ 194,798 Short-term notes payable 15,000 Total current liabilities 209,798 Long-term note payable 500,000 Total liabilities 709,798 Common stock 338,000 Retained earnings 354,468 Total stockholders' equity 692,468 Total liabilities and equity $1,402,266 In nenaro a mactor hunnet for Anril Maw and line of 2017 mananamant nathare the followine informatin

I just need the budgets 6-10

Answer 1

June Zigby Manufacturing Sales Budget Req 1 Sales (Units) Selling price per unit Total budgeted sales April 22,200 26.00 577,200 May 16,000 26.00 416,000 June 19,800 26.00 514,800 Calculation Quarter April May 58,000 26.00 1,508,000 Sales (units)* Selling price per unit Quarter April May June Production budget Req2 Budgeted Next Months Sales (Units) Ratio of inventory to future sales Budgeted Ending Inventory (Units) Budgeted Sales (Units) Inventory Needed Less Beginning Inventory Required Production (Units) April 16,000 80% 12,800 22,200 35,000 17,760 17,240 May 19,800 80% 15,840 16,000 31,840 12,800 19,040 June 22,200 80% 17,760 19,800 37,560 15,840 21,720 17,760 Budgeted Next Months Sales (Units) * 80% 58,000 75,760 17,760 End Inv of Apr End Inv of May 58,000 Raw Materials budget Req3 Required Production (Units) Materials required per unit Raw Material Required Add Ending Inventory Raw Materials Needed Less Beginning Inventory Raw Material Purchased Raw Material Cost per unit Budgeted Raw Material Cost April 17,240 0.50 8,620 4,760 13,380 4,310 9,070 20.00 181,400 May 19,040 0.50 9,520 5,430 14,950 4,760 10,190 20.00 203,800 June 21,720 0.50 10,860 4,300 15,160 5,430 9,730 20.00 194,600 Quarter April May June 58,000 0.50 29,000 Required Production (Units) * 0.50 4,300 Next Months Raw Material Required * 50% 33,300 4,310 End Inv of Apr End Inv of May 28,990 20.00 579,800 Raw Material Purchased * Raw Material Cost per unit April May June Direct labor budget Req4 Required Production (Units) Labor requirements per unit Total Labor hours needed Direct labor rate per hour Budgeted Direct Labor Cost April 17,240 0.50 8,620 18.00 155,160 May 19,040 0.50 9,520 18.00 171,360 June 21,720 0.50 10,860 18.00 195,480 Quarter 58,000 0.50 29,000 18.00 522,000 Required Production (Units) * 0.50 Total Labor hours needed * Direct labor rate per hour Factory Overhead budget Req5 Labor hours needed Variable factory overhead rate Budgeted Variable factory overhead Budgeted Fixed factory overhead Budgeted total factory overhead April 8,620 3.00 25,860 25,134 50,994 May 9,520 3.00 28,560 25,134 53,694 June 10,860 3.00 32,580 25,134 57,714 Quarter April May June 29,000 3.00 87,000 Labor hours needed * Variable factory overhead rate 75,402 162,402

April May June Selling Expenses Budget Req6 Budgeted sales Sales commission percent Sales commission Sales salaries Total budgeted selling expenses 9% April May 577,200 416,000 9% 51,948 37,440 3,300 3,300 55,248 40,740 June 514,800 9% 46,332 3,300 49,632 Quarter 1,508,000 9% 135,720 9,900 145,620 Budgeted sales *9% April May June General & Admin Expenses Budget Req 7 Salaries Interest on long term note Total budgeted General & Admin expenses April 15,000 3,000 18,000 May 15,000 3,000 18,000 June 15,000 3,000 18,000 Quarter 45,000 9,000 54,000 =500,000*0.6% =500,000*0.6% =500,000*0.6% May June Schedule of cash receipts Req 8A Cash sales Credit sales Total cash collections April 144,300 432,900 577,200 May 104,000 312,000 416,000 June 128,700 386,100 514,800 Quarter April 377,000 Budgeted sales * 25% 1,131,000 Budgeted sales * 75% 1,508,000 April May June Schedule of cash receipts Reg 8B Current Months Cash sales Collections of receivables Total cash collections April 144,300 432,900 577,200 May 104,000 432,900 536,900 June 128,700 312,000 440,700 Quarter 377,000 1,177,800 1,554,800 April May June April 43,000 577,200 620,200 May 155,984 536,900 692,884 June 239,824 440,700 680,524 Quarter 43,000 1,554,800 1,597,800 Cash budget Req8 Cash balance, beginning Cash receipts from customers Total cash available Less Cash payments for Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & admin salaries Dividends Loan interest Long term note interest Purchase of equipment Taxes paid Total cash payments Preliminary cash balance Additional loan (loan repayments) Ending Cash balance 194,798 155,160 25,860 51,948 3,300 15,000 181,400 171,360 28,560 37,440 3,300 15,000 13,000 203,800 195,480 32,580 46,332 3,300 15,000 579,998 522,000 87,000 135,720 9,900 45,000 13,000 150 9,000 133,000 =15,000*1% 150 3,000 3,000 3,000 133,000 453,060 239,824 449,216 170,984 (15,000) 155,984 632,492 48,032 1,968 50,000 1,534,768 63,032 (13,032) 50,000 =50,000-48,032 239,824 June Loan Balance Loan Balance - Beginning of Month Additional loan (loan repayments) Loan Balance - End of Month April May 15,000 (15,000) Quarter 15,000 (13,032) 1,968 1,968 1,968

1,508,000 1,264,400 243,600 Calculation =58,000*26 =58,000*21.80 Income Statement Req9 Sales Cost of goods sold Gross Profit Operating expenses Sales Commissions Sales Salaries General Administrative Salaries Interest on short term note payable Interest on long term note payable Total Operating expenses Income before taxes Income tax expense Net Income 135,720 9,900 45,000 150 9,000 =15,000*1% =500,000*0.6%*3 199,770 43,830 17,532 26,298 =43,830*40% Balance Sheet Req 10 Assets Cash Accounts Receivable Raw Material Inventory Finished goods Inventory Total Current Assets Equipment, gross Accumulated Depreciation Equipment, net Total Assets 50,000 386,100 86,000 387,168 =514,800*75% -4,300*20 =17,760*21.80 909,268 739,000 (228,402) =606,000+133,000 =153,000+25,134 *3 510,598 1,419,866 194,600 1,968 17,532 From Cash budget From Income Statement Liabilities & Stockholders Equity Current Liabilties Accounts Payable Short term notes payable Income taxes Payable Total Current Liabilties Long term notes payable Stockholders Equity Common Stock Retained Earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 214,100 500,000 338,000 367,766 =354,468+26,298-13,000 705,766 1,419,866