Question

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets 43,ee0 432,900 Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets 86,198 387,168 949,266 606,000 (153,000) 453,000 Equipment Accumulated depreciation Equipment, net Total assets $1,402,266 Liabilities and Equity 194,798 15,000 Accounts payable Short-term notes payable 209,798 s00,e00 Total current liabilities Long-term note payable Total liabilities 709,798 Common stock 338, еее 354,468 692,468 Retained earnings Total stockholders' equity $ 1,402,266 Total liabilities and equity To prepare a master budget for April, May, and June of 2019, management gathers the following information. a. Sales for March total 22,200 units. Forecasted sales in units are as follows: April, 22,200; May, 16,0000; June, 19,800; and July, 22,200. Sales of 243,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $21.80 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 4,310 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,300 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 80% of the next month's expected unit sales. The March 31 finished goods inventory is 17,760 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $18 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.00 per direct labor hour

Answer 1

Solution 1:

ZIGBY MANUFACTURING
Sales Budget
April, May, and June 2019
	Budgeted Unit Sales	Budgeted Unit Price	Budgeted Sales Dollars
Apr-19	22200	$26.00	$577,200.00
May-19	16000	$26.00	$416,000.00
Jun-19	19800	$26.00	$514,800.00
Totals for the second quarter	58000	$26.00	$1,508,000.00

solution 2:

ZIGBY MANUFACTURING
Production Budget
April, May, and June 2019
	April	May	June
Next month's budgeted sales (units)	16000	19800	22200
Ratio of inventory to future sales	80%	80%	80%
Desired ending inventory	12800	15840	17760
Budgeted sales units	22200	16000	19800
Required units of available production	35000	31840	37560
Beginning inventory	17760	12800	15840
Units to be produced	17240	19040	21720

Solution 3:

ZIGBY MANUFACTURING
Raw Materials Budget
April, May, and June 2019
	April	May	June
Production budget (units)	17240	19040	21720
Raw material per unit	0.5	0.5	0.5
Materials needed for production	8620	9520	10860
Desired ending inventory	4760	5430	4300
Total materials requirements (units)	13380	14950	15160
Beginning inventory	4310	4760	5430
Materials to be purchased	9070	10190	9730
Material price per unit	$20.00	$20.00	$20.00
Budgeted raw material purchases	$181,400.00	$203,800.00	$194,600.00

Solution 4:

ZIGBY MANUFACTURING
Direct Labor Budget
April, May, and June 2019
	April	May	June	Total
Budgeted production (units)	17240	19040	21720	58000
Direct labor hour per unit	0.5	0.5	0.5	0.5
Total labor hours needed	8620	9520	10860	29000
Direct labor rate per hour	$18.00	$18.00	$18.00	$18.00
Budgeted direct labor cost	$155,160.00	$171,360.00	$195,480.00	$522,000.00

Solution 5:

ZIGBY MANUFACTURING
Factory overhead Budget
April, May, and June 2019
	April	May	June	Total
Labor hours needed	8620	9520	10860	29000
Variable overhead rate per hour	$3.00	$3.00	$3.00	$3.00
Budgeted variable overhead	$25,860.00	$28,560.00	$32,580.00	$87,000.00
Budgeted fixed overhead	$25,134.00	$25,134.00	$25,134.00	$75,402.00
Budgeted total overhead	$50,994.00	$53,694.00	$57,714.00	$162,402.00

Note: I have answered more than required parts as HOMEWORKLIB RULES policy, kindly post separate question for answer of remaining questions.