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(Solved): The management of Zigby Manufacturing prepared the following balance sheet for March 31. To prepare ...



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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 32,800 units. Budgeted sales in units follow: April, 32,800; May, 31,200; June, 32,000; and July, . The product's selling price is per unit and its total product cost is per unit. b. Raw materials inventory consists solely of direct materials that cost per pound. Company policy calls for a given month's ending materials inventory to equal of the next month's direct materials requirements. The March 31 raw materials inventory is 7,880 pounds. The budgeted June 30 ending raw materials inventory is 6,400 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 of the next month's budgeted unit sales. The March 31 finished goods inventory is 26,240 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of per hour. e. The predetermined variable overhead rate is per direct labor hour. Depreciation of per month is the only fixed factory overhead item. f. Sales commissions of of sales are paid in the month of the sales. The sales manager's monthly salary is . g. Monthly general and administrative expenses include for administrative salaries and monthly interest on the longterm note payable. h. The company budgets of sales to be for cash and the remaining on credit. Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of sale). i. All raw materials purchases are on credit, and accounts payable 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). . The minimum ending cash balance for all months is . If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of 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 in the quarter and budgeted to be paid in the third calendar quarter. m. Equipment purchases of are budgeted for the last day of June. Required: 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 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 .


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Req 1
Sales Budget

Req 2
Production Budget

Req 3
Direct material Budget
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