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 product’s selling price Is $25.00 per unit and Its total product cost is $2220 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 4,510 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 month’s ending finished goods inventory to equal 80% of the next month’s 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 manager’s 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 month’s 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 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 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 quarter Required 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 month’s 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 6 Required 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 7 Required 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 8 Required 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 month’s 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