20.8

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019 . To prepare a master budget for April, May, and June of 2019 , management gathers the following Information. a. Sales for March total 22,300 units. Forecasted sales in units are as follows: Aprll, 22,300; May, 16,300; June, 22,700; and July, 22,300 . Sales of 252,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $21.00 per unit. b. Company policy calls for a given month's ending raw materlals inventory to equal 50% of the next month's materlals requirements. The March 31 raw materlals Inventory is 4,375 units, which complies with the policy. The expected June 30 ending raw materlals Inventory is 5,200 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 17,840 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $15 per hour. e. Overhead Is allocated based on direct labor hours. The predetermined varlable overhead rate is $3.90 per direct labor hour. Depreciation of $31,670 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,200 g. Monthly general and admInIstratlve expenses Include $24,000 administratlve salarles and 0.9% monthly Interest on the Iong-term note payable. h. The company expects 25% of sales to be for cash and the remaining 75% on credit. Recelvables are collected in full in the month following the sale (none are collected in the month of the sale). I. All raw materlals purchases are on credit, and no payables arlse from any other transactions. One month's raw materlals purchases are fully pald in the next month. J. The minimum ending cash balance for all months is $62,000. If necessary, the company borrows enough cash using a short-term note to reach the minImum. Short-term notes require an Interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the mInImum, the excess will be applied to repaylng the short-term notes payable balance. k. Dividends of $22,000 are to be declared and paid In May. I. 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 paid in the third calendar quarter. m. Equipment purchases of $142,000 are budgeted for the last day of June. Requlred: Prepare the following budgets and other financial Information as required. All budgets and other financlal 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 materlals 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. Sales budget. (Round Budgeted unit price to 2 decimal places.) Production budget. Raw materials budget. (Round per unit values to 2 decimal places.) Raw materials budget. (Round per unit values to 2 decimal places.) Direct labor budget. (Round per unit values to 2 decimal places.) Factory overhead budget. (Round per unit values to 2 decimal places.) Selling expense budget. General and administrative expense budget. Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) ZIGBY MANUFACTURING Cash Budget April, May, and June 2019 \begin{tabular}{|l|} \hline Beginning cash balance \\ \hline Total cash available \\ \hline Cash payments for: \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Total cash payments Preliminary cash balance Ending cash balance \begin{tabular}{|l|c|c|c|} \hline \multicolumn{2}{|c|}{ Loan balance } & \\ \hline & April & May & June \\ \hline Loan balance - Beginning of month & & & \\ \hline Additional loan (loan repayment) & & & \\ \hline Loan balance - End of month & & & \\ \hline \end{tabular} Budgeted income statement for the entire second quarter (not for each month separately). (Round your final answers to the nearest whole dollar.) Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30,2019