The management of Zigby Manufacturing prepared the following balance sheet for March 31. To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 20,800 units. Budgeted sales in units follow: April 20,800; May, 21,600, June, 20,900, and July, 20,800. The product's selling price is $26.00 per unit and its total product cost is $21.00 per unit b. Raw materials inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materiais inventory is 5,360 pounds. The budgeted June 30 ending raw materials inventory is 4,200 pounds, Each finished unit requires 0.50 pound of direct materiaks c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. c. Company 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 invenfory is 16,640 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $17 per hour. e. The predetermined variable ovethead rate is $3 , 00 per direct labor hour. Depreciation of $21 , 100 per month is the only fixed factory overhead item. 1. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $3 , 200 . 9. Monthly general and administrative expenses include $14.000 for administrative salaries and 0.7% monthiy interest on the long-term note payable. h. The company budgets 30% of sales to be for cash and the remaining 70% on credit Credit sales are collected in fult in the month following the sale (ho credit sales are collected in the month of sale). 1. All raw materials purchases are on credit and accounts payable are solely tied to raw matenais purchases. Raw materats purchases are fully paid in the next month (none are paid in the month of parchase). 5. The minimum ending cash balance forall months is $42000 . Ifnecessary, the compary borrows enough cash using a loan to reach the minimum L.oans require an interest payment of 18 at each month-end (befole any repayment) If the month-end preliminary cash balance exceeds the minimum the excess wil be used to repay any loans k. Dividends of $12 , 000 are budgeted to be dedared and paid in May 1. No cash payments for income taxes are budgeted in the second calendar quarter tncome tax will be assessed at 35% in the quarter and bucgeeed to be paid in the third calendar quarter. m. Equipment purchases of $100 , 000 are budgeted for the fast day of June: casn batance exceeas tne minimum, the excess wil pe usea io repay any ioans. k. Dividends of $12 , 000 are budgeted to be declared and paid in May. 1. No cash payments for income taxes are budgeted in the second calendar quarter Income tax will be assessed at 35% in the quarter and budgeted t.

1. The management of Zigby Manufacturing prepared the following balance sheet for March 31. To
prepare a master budget for April, May, and June, management gathers the following
information. a. Sales for March total 20,800 units. Budgeted sales in units follow: April 20,800;
May, 21,600, June, 20,900, and July, 20,800. The product's selling price is $26.00 per unit and
its total product cost is $21.00 per unit b. Raw materials inventory consists solely of direct
materials that cost $20 per pound. Company policy calls for a given month's ending materials
inventory to equal 50% of the next month's direct materials requirements. The March 31 raw
materiais inventory is 5,360 pounds. The budgeted June 30 ending raw materials inventory is
4,200 pounds, Each finished unit requires 0.50 pound of direct materiaks c. Company policy
calls for a given month's ending finished goods inventory to equal 80% of the next month's
budgeted unit sales. c. Company 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 invenfory is
16,640 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $17 per hour. e.
The predetermined variable ovethead rate is $3 , 00 per direct labor hour. Depreciation of $21 ,
100 per month is the only fixed factory overhead item. 1. Sales commissions of 8% of sales are
paid in the month of the sales. The sales manager's monthly salary is $3 , 200 . 9. Monthly
general and administrative expenses include $14.000 for administrative salaries and 0.7%
monthiy interest on the long-term note payable. h. The company budgets 30% of sales to be for
cash and the remaining 70% on credit Credit sales are collected in fult in the month following the
sale (ho credit sales are collected in the month of sale). 1. All raw materials purchases are on
credit and accounts payable are solely tied to raw matenais purchases. Raw materats purchases
are fully paid in the next month (none are paid in the month of parchase). 5. The minimum
ending cash balance forall months is $42000 . Ifnecessary, the compary borrows enough cash
using a loan to reach the minimum L.oans require an interest payment of 18 at each month-end
(befole any repayment) If the month-end preliminary cash balance exceeds the minimum the
excess wil be used to repay any loans k. Dividends of $12 , 000 are budgeted to be dedared and
paid in May 1. No cash payments for income taxes are budgeted in the second calendar quarter
tncome tax will be assessed at 35% in the quarter and bucgeeed to be paid in the third calendar
quarter. m. Equipment purchases of $100 , 000 are budgeted for the fast day of June: casn
batance exceeas tne minimum, the excess wil pe usea io repay any ioans. k. Dividends of $12 ,
000 are budgeted to be declared and paid in May. 1. No cash payments for income taxes are
budgeted in the second calendar quarter Income tax will be assessed at 35% in the quarter and
budgeted to be paid in the third calendar quarter. m . Equipment purchases of $100 , 000 are
budgeted for the last day of June Required: Prepare the following budgets for the months of
April, May, and June: 1. Sales budget. 2. Production budget. 3. Direct materials budget. 4. Direct
labor budget. 5. Factory overhead budget: 6. Seiling expense budget. 7. General and
adminisvative expense buoget. 8. Schedule of cash receipts. 9. Schedule of cash payments for
direct materials 10. Cash budget. 11. Budgetedincome statement for entresecond quarer foot
nioniny). 12. Budgeted boance sheet ot june 30 Complete this question by entering your answers
in the tabs below. Factory overhead budget. (Round variable overhead rate values to 2 decimal
places.) Complete this question by entering your answers in the tabs below. Selling expense
budget. Complete this question by entering your answers in the tabs below. General and
administrative expense budget. 8. Schedule of cash receipts. 9. Schedule of cash payments for
direct materials. 10. Cash budget. (Negative balances and Loan repayment amounts (if any)
should be indicated with minus sign.) Total cash available Less: Cash payments for: ZIGEY

2. MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 ZIGBY
MANUFACTURING Budgeted Balance Sheet ( Req 11