Need help please. The management of Zigby Manufacturing prepared the following e
ID: 2405934 • Letter: N
Question
Need help please.
The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017:
To prepare a master budget for April, May, and June of 2017, management gathers the following information:
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.
Estimated Balance Sheet
March 31, 2017 Assets Cash $ 65,000 Accounts receivable 437,760 Raw materials inventory 90,200 Finished goods inventory 308,028 Total current assets 900,988 Equipment, gross 630,000 Accumulated depreciation (165,000 ) Equipment, net 465,000 Total assets $ 1,365,988 Liabilities and Equity Accounts payable $ 204,500 Short-term notes payable 27,000 Total current liabilities 231,500 Long-term note payable 515,000 Total liabilities 746,500 Common stock 350,000 Retained earnings 269,488 Total stockholders’ equity 619,488 Total liabilities and equity $ 1,365,988 ework Complete this question by entering your answers in the tabs Delow Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Requ Production budget. Z?GBY MANUFACTURING Production Budget April, May, and June 2017 April May June 16,000 70% 11,200 23,000 70% 22,800 Next month's budgeted sales (units) Ratio of inventory to future sales Budgeted ending inventory (units) Budgeted units sales for month Required units of available production Beginning inventory (units) Units to be produced Prev 1 of 1 20 DoO F4 P-11 4 5
Explanation / Answer
1.sales budget April May June Quarter Budgeted units sales 22800 16000 23000 61800 x selling price per unit 24 24 24 24 Total Budgeted Sales 547200 384000 552000 1483200 2.Production budget April May June Budgeted units sales 22800 16000 23000 Add: Desired Ending Inventory(70% of next month unit sale) 11200 16100 15960 Total Needs 34000 32100 38960 Less: Beginning Inventory 15960 11200 16100 Required production in units 18040 20900 22860 3.direct material budget April May June Quarter required production in units of finished goods 18040 20900 22860 61800 x units of raw material needed per unit of finished goods 0.5 0.5 0.5 0.5 units of raw material needed to meet production 9020 10450 11430 30900 Add: Desired Ending Inventory(50% of next month production need) 5225 5715 5500 5500 Total Needs 14245 16165 16930 36400 Less: Beginning Inventory 4510 5225 5715 4510 Required Inventory Purchase 9735 10940 11215 31890 x cost per unit 20 20 20 20 cost of raw material to be purchased 194700 218800 224300 637800 4.direct labor budget April May June Quarter required production in units of finished goods 18040 20900 22860 61800 x hours require per unit 0.5 0.5 0.5 0.5 total hours required 9020 10450 11430 30900 x cost per unit 11 11 11 11 direct labor cost 99,220 1,14,950 1,25,730 3,39,900 5.factory overhead budget April May June Quarter direct labor hours required 9020 10,450 11,430 30900 x cost per hour 4.2 4.2 4.2 4.2 allocated overhead 37,884 43,890 48,006 1,29,780 add : depreciation 35020 35020 35020 105060 Total overhead 72,904 78,910 83,026 2,34,840 6.selling expense budget april may june Quarter sales commission (10% of sales) 2280 1600 2300 6180 sales manager salary 4500 4500 4500 13500 6780 6100 6800 19680