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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, 2817 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets $44,888 58e,8e 98,288 444,888 1,878,288 688,888 154,888) 454,88e $ 1,532,288 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 $ 211,3e8 16,888 227,388 585,888 732,388 339,8e8 468,988 799,988 $ 1,532,288 To prepare a master budget for April, May, and June of 2017, management gathers the following Information: a. Sales for March total 25,000 units. Forecasted sales in units are as follows: Aprl, 25,000; May, 16,300; June, 21,100, and July 25,000. Sales of 244,000 units are forecasted for the entire year. The products selling price Is $25.00 per unit and Its total product cost is $2220 per unit. b. Company policy calls for a given months ending raw materials inventory to equal 50% of the next months materials requirements. The March 31 raw materials Inventory is 4,510 unlts, which complles with the policy. The expected June 30 ending raw materials Inventory Is 4,400 units. Raw materlals cost $20 per unit. Each finished unit requlres 0.50 units of raw materlals. c. Company policy calls for a given months ending finished goods inventory to equal 80% of the next months expected unit sales. The March 31 finished goods Inventory Is 20,000 units, which complies with the policy d. Each finlshed unlt requires 0.50 hours of direct labor at a rate of $19 per hour e. Overhead is allocated based on direct labor hours. The predetermined varlable overhead rate is $3.10 per direct labor hour. f. Sales representatives, commissions are 6% of sales and are paid in the month of the sales. The sales managers monthly salary is g. Monthly general and administrative expenses include $16,000 administrative salaries and 0.8% monthly interest on the long-term h. The company expects 20% of sales to be for cash and the remaining 80% on credit. Recevables are collected in full in the month I. All raw materials purchases are on credit, and no payables arise from any other transactions. One months raw materlals purchases J. The minimum ending cash balance for all months Is $44,000. If necessary, the company borrows enough cash using a short-term Depreclation of $23,920 per month is treated as fixed factory overhead $3,400. note payable following the sale (none are collected In the month of the sale). are fully pald In the next month. note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). lf the ending cash balance exceeds the minlmum, the excess will be applied to repaying the short-term notes payable balance k. Dividends of $14,000 are to be declared and pald In May l. 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 pald In the third calendar quarter. m. Equipment purchases of $134,000 are budgeted for the last day of JuneRequired: 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 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Sales budget. (Round Budgeted unit price to 2 decimal places.) ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 Budgeted Budgeted Budgeted Unit Sales Unit PriceSales Dollars April 2017 May 2017 June 2017 Totals for the second quarterRequired 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Production budget. ZIGBY MANUFACTURING Production Budget April, May, and June 2017 April May 21,100 June 16,300 25,000 Next months budgeted sales (units) Ratio of inventory to future sales 80% 80% 80% Required units of available production Units to be produced KRequired 1 Required 3 〉に ,1 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required Required 9 Required 10 Raw materials budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 April May June Production budget (units) Materials needed for production Total materials requirements (units) Materials to be purchased Material price per unit Budgeted raw material purchases Required 2 Required 4 >Required 6 Required 7 Required 8 Required 9 Required 10 Required 1 Required 2 Required 3 Required 4 | Required 5 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May June Total Budgeted production (units) Total labor hours needed Budgeted direct labor cost Required 3 Required 5 >Required 1 Required 2 Required 3 Required 4Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Factory overhead budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 May April June Total Labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead Required 4 Required 6Required i Required 2 Required 3 Required 4 Required 5 Required E Required 7 Required 8 Required 9 Required 10 Selling expense budget ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 May April June Budgeted sales Sales commissions Required 5 Required 7Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April May June Total budgeted G&A expenses K Required 6 Required 8Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Calculation of Cash receipts from customers April May Total budgeted sales Cash sales Sales on credit 20% 80% Total cash receipts from customers Current months cash sales Collections of receivables ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 April May June Beginning cash balance Total cash available Cash payments for. Total cash payments Preliminary cash balance Ending cash balance Loan balance April May June Loan balance Beginning of month Additional loan (loan repayment) Loan balance End of month < Required 7 Required 9>Required 1 Required 2 Required 3 Required 4 Required 5 Required 6Required 7 Required 8 Required 9 Required 10 Budgeted income statement for the entire second quarter (not for each month separately). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Operating expenses Total operating expenses 〈 Required 8 Required 10 〉Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required9 Required 10 Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets Total current assets Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders Equity Total Stockholders Equity Total Liabilities and Equity

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ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 Budgeted Unit Budgeted UnitB Budgeted Total Dollars Sales rice 25000 16300 625000 407500 527500 1560000 25.00 une Totals for the quarter 62400 ZIGBY MANUFACTURING Production Budget April, May, and June 2017 une 21,100 80% 16,880 Next months budgeted sales (units Ratio of inventory to future sales Budgcted ending inventory (units Budgeted units sales for month Required units of available production Beginning inventory (units Units to be produced 25,000 80% 20,000 21100 41,100 17,840 23,260 16,300 80% 13,040 38,040 20,000 18,040 33,180 13,680 19,500 60,800 ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 June 19,500 Production budget (units Materials requirements per unit Materials needed for production Budgeted ending invento Total materials requirements (units Beginning inventor Materials to be purchased Material price per unit ($ Total cost of direct material purchases 18,040 9020 13895 23,260 11630 4,400 16030 9750 15565 4,875 10,690 9,385 10,215 30,290 187700 213800 204300 605800 ZIGBY MANUFACTURING Direct Labour Budget April, May, and June 2017 une Budgeted production (units) Labor requirements per unit (hours Total labor hours needed Labor rate ($ per hour Labor dollars ($) 18,040 19,500 23,260 9020 9750 30400 171380 185250 220970 577600 Created by Universal Document ConverterZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 une Labor hours needed Variable factory overhead rate Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead 9,020 9,750 11,630 27962 23,920 51,882 30225 23,920 54,145 36053 23,920 59,973 94240 71760 166000 ZIGBY MANUFACTURING ense Budget Sellin April, May, and June 2017 ril une 6,25,000 Budgeted sales Sales commission percent Sales commissions Sales salaries Total selling expenses 4,07,500 5,27,500 37500 3,400 40,900 24450 3,400 27,850 31650 3,400 35,050 93600 10200 103800 ZIGBY MANUFACTURING eneral and Administrative Expense Budgets April, May, and June 2017 une Salaries Interest on long-term note Total expenses 16000 4,040 20,040 16000 4,040 20,040 16000 4,040 20,040 48000 12120 60,120 Calculation of Cash receipts from customers: ri Total budgeted sales Cash sales Sales on credit 6,25,000 125000 500000 4.07,500 81500 326000 une 5,27,500 105500 422000 80% Total cash receipts from customers une Current months cash sales Collections of receivables Total cash receipts 125000 5,00,000 6,25,000 81500 5,00,000 5,81,500 105500 3,26,000 4,31,500 Created by Universal Document ConverterZIGBY MANUFACTURING Cash Budget April, May, and June 2017 June 44000 625000 669000 181258 581500 762758 Beginning cash balancZIGBY MANUFACTURING Budgeted Balance Sheet ASSETS Cash Accounts receivable Raw materials inventor Finished goods inventor Total current assets Equipment Less: accumulated depreciation Total assets 69280 Cash budget 4,22,000 Note C 88,000Note D 4.44,000 Note E 10,23,280 7,42,000 2,25,760 Note F 5.16,240 Note G 39 LIABILITIES AND EQUITY Accounts payable Bank loan payable Taxes payable Total current liabilities Long-term note payable Common stock Retained earnings Total stockholders equit Total liabilities and equit 2,04,300 Note H O Cash budget 4,256 Income stmt 208,556 5,05,000 339000 4.86,964 Unchanged Note l 8,25,964 Note C Beginning receivables Credit sales Less: collections 500000 12,48,000 13,26,000 4,22,000 Ending receivables Note D Beginning raw materials inventor Purchases of raw materials Less: materials used in production Ending raw materials inventor Also equals 4,400 units $20 $88,000 *30,400 units x $20 per unit 90200 6,05,800 88,000 Note E Beginning finished goods invento Cost of goods completed during the period Less: cost of goods sold during the period Ending finished goods invento Also equals 20,000 units$22.20- $444,000 444000 13,85,280 13,85,280 4.44.000 Created by Universal Document ConverterNote F Beginning equipment Purchased in June Total 608000 134 000 7.42,000 Note G Beginning accumulated depreciation Depreciation Expense Total 154000 2,25,760 Note H Beginning accounts payable Purchases of raw materials Payments for raw materials Ending accounts payable 211300 6,05,800 6,12,800 2,04 300 Created by Universal Document Converter

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