Please solve for problems 13 and 14... Please show work, thanks. [The following
ID: 2577865 • Letter: P
Question
Please solve for problems 13 and 14... Please show work, thanks.
[The following information applies to the questions displayed below.] The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 2015 ZIGBY MANUFACTURING Estlmated Balance Sheet March 31, 2015 Assets Cash Accounts recelvable Raw materlals Inventory Flnished goods Inventory $ 53,000 392,400 96,600 313,920 Total current assets Equipment, gross Accumulated depreciation 855,920 626,000 (163,000) Equipment, net 463,000 Total assets $1,318,920 Liabilities and Equity Accounts payable Short-term notes payable 204,800 25,000 Total current llablities Long-term note payable $ 229,800 520,000 Total lablities Common stock Retalned earnings 749,800 348,000 221,120 Total stockholders' equity 569,120 Total llablties and equity $1,318,920Explanation / Answer
13.
14.
Workings:
ZIGBY MANUFACTURING Budgeted Income statement for the quarer ending June 30, 2015 Sales 1383750 Cost of goods sold 1107000 Gross margin 276750 Selling and administrative expenses Sales salaries 12900 Sales commission 96863 General administrative salaries 75000 Interest on long term note payable 10920 Total selling and administrative expenses 195683 Net earnings before income teaxes 81067 Income tax expense (40%) 32427 Net income 48640 Cost of goods sold Beginning inventory of raw material 96600 Add: Purchases of raw material 624400 721000 Less: Ending inventory of raw material 106000 (5,300 x $20) Raw material used for production 615000 Direct labor cost 276750 Variable manufacturing overhead 123000 Fixed manufacturing overhead 92250 1107000 Add: Beginning inventory of finished goods 313920 1420920 Less: Ending inventory of finished goods (17,440 x 18.00) 313920 Cost of goods sold 1107000