Please include explanation in line for calculations. Thanks! The management of Z
ID: 2568366 • Letter: P
Question
Please include explanation in line for calculations. Thanks!
The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 2015 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory $50,000 434.240 84.210 368,000 Total current assets Equipment, gross Accumulated depreciation 936,450 602,000 (151,000) Equipment, net 451,000 Total assets 1,387450 Liablities and Equity Accounts payable Short-tem notes payable 196,610 2,000 Total current liabilities Long-term note payable $ 208,610 505,000 Total liabilities Common stock Retained earnings 713,610 336,000 337840 Total stockholders' equity 673,840 Total liabilities and equity 1,387,450Explanation / Answer
ZIGBY MANUFACTURING COMPANY SALES BUDGET APRIL, MAY, JUNE Budgeted Sales unit Unit Price Budgeted Apr-15 23,000 23.60 542,800 May-15 15,300 23.60 361,080 Jun-15 20,400 23.60 481,440 Total for the Quarter 58,700 1,385,320 Production Budget April May June Total Next month sales 15300 20400 23,000 58,700 Closing inventory (80% of next month) 12240 16320 18400 18400 Add: Budgted Sales of current month 23000 15300 20400 58700 Required units of available Production 35240 31620 38800 77100 Less: Opening Inventory 18400 12240 16320 18400 (Given) Units to be produced 16840 19380 22480 58700 RAW MATERIAL BUDGET April May June Total Expected production 16840 19380 22480 58700 Raw maetrial need per unit 0.5 0.5 0.5 0.5 Material requirment for production 8420 9690 11240 29350 Add: Closing Inventory (50% of next) 4845 5620 4100 4100 (Given) Total requirement 13265 15310 15340 33450 Less: opening inventory 4210 4845 5620 4210 Material to be purchased in units 9055 10465 9720 29240 Purchase cost per unit 20 20 20 20 Purchase budget in $ 181100 209300 194400 584800 DIRECT LABOUR COST BUDGET April May June Total Expected production 16840 19380 22480 58700 Labour hour required per unit 0.5 0.5 0.5 0.5 Total labour hours required 8420 9690 11240 29350 Labour rate per hour 15 15 15 15 Budgeted labour cost in $ 126300 145350 168600 440250