Question

Homework (2) The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 ASsets cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets $ 48,eee 438,750 87,900 383,760 958,410 616,eee (158,eee) 458,000 $ 1,416,410 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities 187,200 20,eee 207,200 s08,eee 715,200 343,000 358,210 701,21e Common stock Retained earnings Total stockholders' equity Total liabilities and equity $1,416,41e To prepare a master budget for April, May, and June of 2017, management gathers the following information

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. zigby April MayJun 1. Sales Budget Apr Jul Budgeted No of Units Selling Price Budgeted Total Sale $ $ May 19,500 30.0 $ 585,000 $ Jun 17,100 30.0 $ 513,000 $ Total 21,300 57,900 30.0 $ 30.0 $ 639,000 $ 1,737,000 $ Aug 19,500 30.0 $ 585,000 $ 30.0 - 2. Production Budget Apr May Jun Jul Aug 19,500 0 80% Budgeted No of Units Add: Desired Ending Inventory Total Need Less: Beginning Inventory Budgeted Production 19,500 13,680 33,180 - 15,600 17,580 17,100 17,040 34,140 - 13,680 20,460 21,300 15,600 36,900 -17.040 19,860 Total 57,900 15,600 73,500 -15,600 57,900 3. Direct Material Purchase Budget Apr May Jun 0.50 50% Budgeted Production per unit usage Total Mat Required Add: Desired Ending Inventory Total Need Less: Beginning Inventory Budgeted Purchase of Raw Maat Units Per Unit Price Budgeted Purchase of Raw Mats 17,580 0.50 8,790 5,115 13,905 -4,395 9,510 20 190,200 10,230 4,965 15,195 -5,115 10,080 20 201,600 Total 19,860 57,900 0.50 0.50 9,930 28,950 4,800 4,800 14,730 33,750 -4,965 -4,395 9,765 29,355 20 S 20 195,300 $ 587,100 $ $ $ $ S $ 4. Direct Labor Budget Apr 0.5 Budgeted Production per unit Hour Total Hours Required Per Hour Price Budgeted Direct Labor Cost May 17,580 0.5 8,790 23 $ 202,170 $ Jun Total 20,460 19,860 57,900 0.5 0.5 10,230 9 ,930 28,950 23 S 23 S 23 235,290 $ 228,390 $ 665,850 $ 5. Factory Overhead Budget: Apr May Total Direct Labor Hours Needed Predetermined Overhead Rate Total Overheads-Cash Expense Fixed Overhead-Depreciation Total Overheads $ $ $ $ 8,790 3.4 29,886 27,020 56,906 $ $ $ $ Jun 10,230 9 - 3.4 $ 34,782'$ 27,020 $ 61,802 $ Total ,930 28,950 3.4 s 3.4 33,762 $ 98,430 27,020 $ 81,060 60,782 $ 179,490 6.Selling Expense Budget: 7% of Sale Sales Representative's Commission Sales Manager Monthly Salary Total Budgeted Selling Expense Apr $ $ $ May 40,950 $ 3,800 $ 44,750 $ 35,910 3,800 39,710 Jun $ $ $ 44,730 3,800 48,530 Total $ 121,590 $ 11,400 $ 132,990

7. General and Administrative Expense Budget Administrative Salaries Interest on Long Term Note Payable Total Budgeted Gen and Adm Expense 0.50% Apr $ $ $ May 20,000 $ 2,540 $ 22,540 $ Jun 20,000 $ 2,540 $ 22,540 $ Total 20,000 $ 60,000 2,540 $ 7,620 22,540 $ 67,620 9. Budgeted Income Statement: Sales Revenue Less: Cost of Goods Sold $ $ 1,737,000 1,424,340 57,900*$24.60 Gross Profit $ 312,660 Less: Selling Expense Less: General and Administrative Expense Less: Interest on Short Term Note $ $ $ 132,990 67,620 438 Income before tax Less: Income Tax Net Income 40% $ $ $ 111,612 44,645 66,967 8. Cash Budget: Beginning Balance Add: Cash Collected against sales Apr $ $ May 48,000 $ 585,000 $ Jun 126,254 $ 567,000 $ Total 152,732 $ 48,000 544,500 $ 1,696,500 $ 633,000 $ 693,254 $ 697,232 $ 1,744,500 Total Available Cash Less: Cash disbursment for: $ $ Raw Material Purchase Direct Labor Manufacturing Overheads Selling Expense General and Admin Expense Dividend Equipment Purchase 187,200 $ 202,170 $ 29,886 $ 44,750 $ 22,540 $ $ $ 190,200 $ 235,290 $ 34,782 $ 39,710 $ 22,540 $ 18,000 $ 201,600 $ 228,390 $ 33,762 $ 48,530 $ 22,540 $ $ 138,000 $ 579,000 665,850 98,430 132,990 67,620 18,000 138,000 Total Cash Payment Surplus/(Deficit) $ $ 486,546 $ 146,454 $ 540,522 $ 152,732 $ 672,822 $ 1,699,890 24,410 $ 44,610 Borrowing Interest Payment 1% Repayment $ $ $ $ -200 -20,000 23,828 $ -238 $ $ 23,828 -438 -20,000 Ending Balance $ 126,254 $ 152,732 $ 48,000 $ 48,000

Schedule of Collection from customers: Credit Sale May 30th June Receivable Apr $ 438,750 March Receivable April Sale May Sale June Sale Total Credit Sale Collection Cash Collection Total Collection 438,750 384,750 479,250 June Total $ 438,750 438,750 $ 438,750 $ 384,750 $ 384,750 - 438,750 $ 384,750 $ 1,262,250 128,250 $ 159,750 $ 434,250 567,000 $ 544,500 $ 1,696,500 $ $ $ $ 479,250 479,250 25% $ $ $ 438,750 $ 146,250 $ 585,000 $ $ 479,250 Schedule of payment for pur: Credit Pur May Total Apr $ 187,200 $ June $ $ $ 201,600 $ March Payable April Pur May Pur June Pur Total Payment for Pur 190,200 190,200 201,600 195,300 30th June Payable 187,200 190,200 $ 201,600 $ 195,300 579,000 $ 195,300 $ $ 187,200 $ 190,200 $ 201,600 $ 10. Budgeted Balance Sheet: $ $ 5900*200 $ 20000*21.65 $ | $ 638000+149000 $ 169000+119130 $ | $ | $ 48,000 479,250 96,000 383,760 1,007,010 754,000 -239,060 514,940 1,521,950 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Interest Payable Income Tax Payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 195,300 23,828 | $ | $ 44,645 263,773 508,000 771,773 343,000 407,177 750,177 1,521,950 $ 411100+Net income-29000 $ $ $