Question

please help with required 6-10. i have already completed 1-5

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment 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 $ 48,000 438,750 87,900 383,760 958, 410 616,000 (158,000) 458,000 $1,416,410 $ 187,200 20,000 207,200 500,000 715,200 343,000 350, 210 701,210 $1,416,410 To prepare a master budget for April, May, and June of 2019, management gathers the following information. a. Sales for March total 19,500 units. Forecasted sales in units are as follows: April, 19,500: May, 17.100: June, 21,300; and July 19,500. Sales of 248,000 units are forecasted for the entire year. The product's selling price is $30.00 per unit and its total product cost is $24.60 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 4,395 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,800 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials

Answer 1

Sales Budget Sales Units Budgeted Selling price Total Budgeted Sales April 19,500 $30.00 $585,000 May 17,100 $30.00 $513,000 June Quarter 21,300 57,900 $30.00 $30.00 $639,000 $1,737,000 Total Budgeted Sales Cash Sales Sales on Credit April $585,000 $146,250 $438,750 May June Quarter $513,000 $639,000 $1,737,000 $128,2501 $159,750 $434,250 $384,750 $479,250 $1,302,750 25% 75% Current Month Cash Sales Collection of Receivables Total collection- AR Total Cash receipts from Customers April $146,250 $438,750 $585,000 May $128,250 $438,750 $567,000 June Quarter $159,750 $434,250 $384,750 $1,262,250 $544,500 $1,696,500 Production Budget April Budgeted Sales Add : Closing inventory Total Requirement Less: Opening Inventory Production Units Closing stock of month will be opening stock of next month Closing stock of June - July sales X 80% 19,500 13,680 33,180 15,600 17,580 May 17,100 17,040 34,140 13,680 20,460 June 21,300 15,600 36,900 17,040 19,860 Quarter 57,900 15,600 73,500 15,600 57,900 3 June Budgeted Production Raw material needed per unit Consumed for production Add: Closing inventory Total Needs Less: Opening Inventory Purchase Budget (Units) Purchase price per unit Purchase budget in value Raw Material purchase budget April 17,580 0.50 8,790 5,115 13,905 4,395 9,510 $20 $190,200 May 20,460 0.50 10,230 4,965 15,195 5,115 10,080 $20 $201,600 19,860 0.50 9,930 4,800 14,730 4,965 9,765 $20 $195,300 Quarter 57,900 0.50 28,950 4,800 33,750 4,395 29,355 $587,100 June Expected Cash disbursements for Materials Purchases April May $187,200 $190,200 March Purchase April Purchase May Purchase Total purchase payment Quarter $187,200 $190,200 $201,600 $391,800 $201,600 $201,600 $187,200 $190,200 4 Quarter Production units Direct labor hour per unit Direct Labor needed Direct Labor rate Direct Labor budget Direct labor cost budget Direct Labor Cost Budget April 17,580 0.50 8,790 $23 $202,170 $202,170 May 20,460 0.50 10,230 $23 $235,290 $235,290 June 19,860 0.50 9,930 $23 $228,390 $228,390 $665,850 $665,850 5 Manufacturing overhead budget April Direct Labor hours needed for production Variable Overhead rate per hour Variable overheads Budgeted Variable overhead Budgeted Fixed Overhead Budgeted Total overhead 8,790 $3.40 $29,886 $29,886 $27,020 $56,906 May 10,230 $3.40 $34,782 $34,782 $27,020 $61,802 June Quarter 9,930 28,950 $3.40 $33,762 $98,430 $33,762 $98,430 $27,020 $81,060 $60,782 $179,490 6 Budgeted Sales Sales Commission at 7% of sales Sales manager salary Budgeted selling expenses Selling Expense Budget April $585,000 $40,950 $3,800 $44,750 May $513,000 $35,910 $3,800 $39,710 June Quarter $639,000 $1,737,000 $44,730 $121,590 $3,800 $11,400 $48,530 $132,990 7 General and administration expense budget April General administrative salaries $20,000 Interest on Long-term note payable $2,540 Total Budgeted G & A Expense $22,540 May $20,000 $2,540 $22,540 June $20,000 $2,540 $22,540 Quarter $60,000 $7,620 $67,620 8 ZIGBY MANUFACTURING Cash budget April, May and June 2019 April $48,000 May $126,254 June $152,732 Quarter $48,000 $585,000 $633,000 $567,000 $693,254 $544,500 $1,696,500 $697,232 $1,744,500 Beginning cash balance Add : Cash receipts Cash Receipts from Customers Total cash available Cash payments for Raw Materials Direct labor Variable Overhead General & administrative Salaries Sales Commission Sales Salaries Loan Interest Dividends Purchases of Equipment Long term note interest Total cash payments Preliminary cash balance Financing Additional loan (loan repayment) Ending cash balance $187,200 $202,170 $29,886 $20,000 $40,950 $3,800 $200 $190,200 $235,290 $34,782 $20,000 $35,910 $3,800 $201,600 $579,000 $228,390 $665,850 $33,762 $98,430 $20,000 $60,000 $44,730 $121,590 $3,800 $11,400 $200 $18,000 $138,000 $138,000 $2,540 $7,620 $672,822 $1,700,090 $24,410 $44,410 $18,000 $2,540 $486,746 $146,254 $2,540 $540,522 $152,732 -$20,000 $126,254 $23,590 48,000 $3,590 $48,000 $152,732 Loan Balance May Loan Balance - Beginning of the month Additional loan (loan repayment) Loan Balance - End of the month April $20,000 -$20,000 $0 $0 $0 $0 June $0 $23,590 $23,590

$1,737,000 $579,000 $665,850 $179,490 $312,660 9 ZIGBY MANUFACTURING Budgeted Income Statement For Three Month Ended June 30, 2019 Sales Cost of Goods Sold Direct Material Direct Labor Manufacturing overheads Gross Margin Operating expenses Sales Commission Sales manager salary General administrative salaries Bank Loan interest expense Long-term note interest Total Operating expenses Income Before Taxes Less: Income Tax at 40% Net Income $121,590 $11,400 $60,000 $200 $7,620 $200,810 $111,850 $44,740 $67,110 $48,000 $479,250 $96,000 $383,760 $1,007,010 $754,000 $239,060 10 ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2019 Assets Cash Accounts receivable Raw Materials inventory Finished Goods Inventory Total Current Assets Equipment gross Less : Accumulated Depreciation Total Assets Liabilities Accounts payable Bank Loan payable Income tax payable Total Current Liabilities Long term note payable Stockholders' Equity Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Equity $514,940 $1,521,950 $195,300 $23,590 $44,740 $263,630 $508,000 $343,000 $407,320 $750,320 $1,521,950 Statement of Retained Earnings for June 30, 2019 Opening Balance Add: Net profit Less: Dividend paid Closing Balance $358,210 $67,110 -$18,000 $407,320 Accounts receivable closing balance Opening Balance Add : Sales Less: Collection Closing Balance $438,750 $1,737,000 $1,696,500 $479,250 Accounts payable closing balance Opening Balance Add: Purchases Less: Payment Closing Balance $187,200 $587,100 - $579,000 $195,300