I need help solving this The management of Zigby Manufacturing prepared...

60.1K

Verified Solution

Question

Accounting

I need help solving this
image
The management of Zigby Manufacturing prepared the following balance sheet for March 31 : To prepare a master budget for April. May. and June, management gothers the following information. a. Sales for March total 90.200 units. Budgeted sales in units follow. Apri, 90.200 : May, 85, 800; June, 88,000; and July, 90.200 . The product's seiling price is $24.00 per unit and its total product cost is $19.85 per unit. b. Raw materials inventory consists solely of drect materiols thot cost $20 per pound. Company policy cals for a given month's ending materials inventory to equal 50 s of the next month's direct materiais requirements. The March 31 raw materials inventory is 21.670 pounds. The budgeted June 30 ending raw materials inventory is 17.600 pounds Each finisheo unt tequires 0.50 pound of direct materials. c. Compsny policy calls for a given month's ending finished goods inventory to equal 80 of the next month's budgeted unit sales The March 31 finished goods inventory 1572160 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of 515 per hown: e. The predetermined variable overhead rate is $270 per direct labor hout Deprecietion or $68,000 pec month is the only fixed foctory overhead item 1. Sales commissions of 84 of saies are paid in the month of the sales. The soles manager s monthiy saiary is $13.200 9. Monthly general and administrative expenses inc ude $52.800 for admin strotive salaries and 0.9%6 monthly interest on the loogterm note payable h. The company budgets 30% of sales to be for cash and the rembining 70N on credit credit sales dre colected in ful in the month fotiowing the sole (no credit soles are coliected in the month of seie). 1. All row meterials purchases are on credit, ond accounts paybble dre solely tied to raw materials purchases. Raw materials purchsses sre fuly paid in the next month (none are paid in the month of purchase) 1. The minimum ending cosh boiance for ail monthe is $176,000 if necessary, the coingany borrows enough coah using a ioan to The management of Zigby Manufacturing prepared the following balance sheet for March 31 : To prepare a master budget for April. May. and June, management gothers the following information. a. Sales for March total 90.200 units. Budgeted sales in units follow. Apri, 90.200 : May, 85, 800; June, 88,000; and July, 90.200 . The product's seiling price is $24.00 per unit and its total product cost is $19.85 per unit. b. Raw materials inventory consists solely of drect materiols thot cost $20 per pound. Company policy cals for a given month's ending materials inventory to equal 50 s of the next month's direct materiais requirements. The March 31 raw materials inventory is 21.670 pounds. The budgeted June 30 ending raw materials inventory is 17.600 pounds Each finisheo unt tequires 0.50 pound of direct materials. c. Compsny policy calls for a given month's ending finished goods inventory to equal 80 of the next month's budgeted unit sales The March 31 finished goods inventory 1572160 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of 515 per hown: e. The predetermined variable overhead rate is $270 per direct labor hout Deprecietion or $68,000 pec month is the only fixed foctory overhead item 1. Sales commissions of 84 of saies are paid in the month of the sales. The soles manager s monthiy saiary is $13.200 9. Monthly general and administrative expenses inc ude $52.800 for admin strotive salaries and 0.9%6 monthly interest on the loogterm note payable h. The company budgets 30% of sales to be for cash and the rembining 70N on credit credit sales dre colected in ful in the month fotiowing the sole (no credit soles are coliected in the month of seie). 1. All row meterials purchases are on credit, ond accounts paybble dre solely tied to raw materials purchases. Raw materials purchsses sre fuly paid in the next month (none are paid in the month of purchase) 1. The minimum ending cosh boiance for ail monthe is $176,000 if necessary, the coingany borrows enough coah using a ioan to

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students