Question

i just need help for required 6-10. thanks.

Problem 07-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 99,000 500,250 101,000 492,500 1,102,750 618,000 (159,000 459,000 $ 1,561,750 $ 209,709 21,000 230,700 505,000 735, 700 344,000 482,050 826,050 $ 1,561,750 To prepare a master budget for April, May, and June of 2019, management gathers the following information a. Sales for March total 23,000 units. Forecasted sales in units are as follows: April, 23,000; May, 19,000; June, 18,800; and July, 23,000. Sales of 249,000 units are forecasted for the entire year. The product's selling price is $29.00 per unit and its total product cost is $25.00 per unit. b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. The March 31 raw materials inventory is 5,050 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,500 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. c. Company policy calls for a given month's ending finished goods inventory to equal 70% of the next month's expected unit sales. The March 31 finished goods inventory is 16,100 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $24 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.60 per direct labor hour. Depreciation of $24,320 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3900

Answer 1

Answer to Requirement 5 ZIGBY MANUFACTURING Factory Overhead Budget April Total May June Labour Hours needed Variable Factory Overhead Rate Budgeted Variable Overhead Budgeted Fixed Overhead Budgeted Total Overhead 10,870 10,100 9,430 3.60 3.60 3.60 39,132.00 36,360.00 33,948.00 109,440.00 72,960.00 24,320.00 24,320.00 58,268.00 24,320.00 60,680.00 63,452.00 182,400.00 Answer to Requirement 6. ZIGBY MANUFACTURING Selling Expenses Budget April May Total June Budgeted Sales Sales Commission percent Sales Commissions Sales Salaries Total Selling Expenses 551,000 545,200 667,000 10% 10% 10% 66,700 54,520 55,100 3,900 176,320 3,900 3,900 11,700 70,600 59,000 58,420 188,020

ZIGBY MANUFACTURING Cash Budget April May June Beginning Cash Balance Cash Receipts from Customers Total cash Available Cash Disbursements: Payment of Raw Materials Payment of Direct Labor Payment of Variable Overhead Sales Commission Sales Salaries General and Administrative Salaries Dividend 171,690 99,000 262,082 667,000 638,000 549,550 766,000 809,690 811,632 209,700 203,000 195,300 226,320 242,400 260,880 36,360 33,948 39,132 66,700 55,100 54,520 3,900 3,900 3,900 10,000 10,000 10,000 19,000 Loan Interest 210 Long- Term Notes Interest Purchase of Equipment Total Cash Disbursements Preliminary Cash Balance Additional Loan (Loan Repayment) Ending Cash Balance 4,040 4,040 4,040 139,000 573,310 547,608 714,472 192,690 -21,000 262,082 97,160 12,840 171,690 262,082 110,000

LOAN BALANCE April May June Loan Balance- Beginning of Month Additional Loan (Loan Repayment) Loan Balance-End of Month 21,000 -21,000 12,840 12,840

Answer to Requirement 9. ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Sales Cost of Goods Sold Gross Profit Operating Expenses: Sales Commissions Sales Salaries General Administrative Salaries |Interest Expense Long Term Note Interest Total Operating Expenses Income before Taxes Income Tax 1,763,200 1,520,000 243,200 176,320 11,700 30,000 210 12,120 230,350 12,850 5,140 Net Income 7,710