1. To prepare a master budget for April, May, and June, management gathers the following
informaton. a. Sales for March total 25,000 units. Budgeted sales in units follow. Aprl, 25,000.
May, 16,300 , June. 2troo, and July, 25,000 . The. product's selling price is $2600 per unit and its
total product cost is $2220 per unt b. Raw materials inventory consists solely of direct materials
thet cost 520 per pound. Comphny policy calis for a given manth s ending materials inventory to
equal 50$ of the next month's direct materiais requiremerts. The March 31 raw materials
inventory is 4.510 pounds. The budgeted June 30 ending raw materials inventory is 4.400
pounds. Each finished unit requires 050 pound of dired materials c. Company policy calis for a
given month's ending finished goods inventory to equal 80 s of the next montis budgeted init
sales. The March 31 finished goods inventory is 20.000 units d. Each finished unit requires 0.50
hour of direct labor at a rate of $19 per hour
e. The predetermined vanable overhead rate is $3.10 per direct iabor hour. Depreciation of
$23.920 per mopth is the only flxed factory overhead item. f. Sales commissions of 6% of sales
are paid in the month of the sales. The sales manager's monthily salary is 53.400 9. Monthly
general and administrative expenses include $16.000 for administrative salaries and 0.8s montily
interest on the longterm note payable h. The company budgets 30% of sales to be for cash and
the remaining 70% on creoin. Credit sales are collected in fuli in the month following the sale
(no credit sales are collected in the month of sale) 1. All raw materials purchases are on credit,
and accounts payoble are solely tied to raw materials purchases. Raw materials purchases are
fully paid in the next month (none are paid in the month of purchase) 1. The minimum ending
cash balance for all months is $44,000. If necessary, the company borrows enough cash using a
loan to reach the minimum. Loans require an interest payment of 1% at each month-end (oefore
any repayment) If the month-end preliminary cash balance exceeds the minimum, the excess will
be used to repay any loans k. Dividends of $14,000 are budgeted to be declared and paid in May
I. 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 ore budgeted for the last day of June. Required: Prepare the
following budgets for the months of Aptil, May, and June: 1. Sales budget 2. Production budget
3. Direct materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense
budget
7. General and administrative expense budget. 8. Schedule of cash recelpts 9. Schedule of cash
payments for direct moterials. 10. Cash budget. 11. Budgeted income statement for entire second
quarter (not monthly). 12. Budgeted balance sheet at June 30 . Complete this question by
entering your answers in the tabs below. 8. Schedule of cash receipts. 9. Schedule of cash

2. payments for direct materials: 10. Cash budget. (Negative balances and Loan repayment amounts
(if any) should be indicated with minus signi)
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 25,000 units. Budgeted sales in units follow: April, 25,000,
May, 16,300, June, 21,100, and July, 25,000, The product's selling price is $26.00 per unit and
its total product cost is $22.20 per unit b. Raw materials inventory consists solely of direct
materials that cost $20 per pound. Company policy calis for a given month's ending materials
inventory to equal 50% of the next month's direct materials requirements. The March 31 raw
materials inventory is 4,510 pounds. The budgeted June 30 ending raw materials inventory is
4,400 pounds. Each finished unit requires 0.50 pound of direct materials. 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 inventory is 20,000 units d. Each finished unit
requires 0.50 hour of direct labor at o rate of $19 per hour:
e. I he predetermined vanable ovemead rate is $3.10 per arect labor hout vepreciation of 3/25.320
per month is the oniy fixed tactory overhead item. t. Sales commissions of 6% of sales are paid
in the month of the sales. The sales managers montily salary is $3,400 9. Monthly general and
administrative expenses include $16.000 for administrative salaries and 0.8 monthly interest on
the longterm note payable. h. The company budgets 30% of sales to be for cash and the
remaining 70% on credit. Credit sales are collected in full in the month following the sale (no
credit sales are collected in the month of sale) 1. All raw materials purchases are on credit, and
accounts payable are solely tied to row materiats purchases Row materials purchases are fully
paid in the next month (none are paid in the month of purchase). 1. The minimum ending cash
balance for all monthi is 544,000 . If necessary, the company borrows enough cash using a loan
to reach the minimum. Loans require an interest payment of 19 at each month-end (before any
repayment). If the month-end preliminary cash baiance exceeds the minimum, the excess will be
used to repay any loans. k. Dividends of $14,000 are budgeted to be declared and paid in Moy. 1.
No cash payments for income taxes are budgeted in the second calendar quartec income tax wil
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 doy 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. Selling expense

3. budget.
7. General and administrative expense budget 8. Schedule of cash receipts. 9. Schedule of cash
payments for direct materials 10. Cash budget 11. Budgeted income statement for entire second
quarter (not monthly) 12. Budgeted balance sheet at June 30 . Complete this question by entering
your answers in the tabs below. 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 signi)
Loan balance
Budgeted income statement for entire second quarter (not monthly). (Round your final answers
to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For
Three Months Ended June 30 Selling, general and administrative expenses
Budgeted balance sheet at June 30. (Round your final answers to the nearest whole dollar.)