ZIGBY MANUFACTURING
Step 1: SALES BUDGET
April,May and June 2017
particulars | budgeted sales $ | budgeted unit price $ | budgeted tota $ |
april 17 | 20800 | 25 | 520000 |
may 17 | 21600 | 25 | 540000 |
june 17 | 2000 | 25 | 522500 |
1582500 |
Step 2:
PRODUCTION BUDGET
april,may,june 17
particulars | april | may | june | total |
next month's budgeted sales[units] | 21600 | 20900 | 20800 | |
ratio of inventory to future sales | 80% | 80% | 80% | |
budgeted ending inventory[units] | 17280 | 16720 | 16640 | |
budgeted units sales for the month | 20800 | 21600 | 20900 | |
required units of available production | 30080 | 38320 | 37540 | |
beginning inventory[units] | 16640 | 17280 | 16720 | |
units to be produced | 13440 | 21040 | 20820 | 55300 |
Step 3:
RAW MATERIAL BUDGETED
particulars | april | may | june | total |
production budget[units] | 13440 | 21040 | 202820 | |
material required per units | 0.5 | 0.5 | 0.5 | |
material need for production | 6720 | 10520 | 10410 | |
budgeted ending inventory | 5260[10520*50%] | 5205[10410*50] | 5200 | |
total material required[units] | 11980 | 15725 | 14610 | |
beginning inventory | 5360 | 5260 | 5205 | |
material to be purchased | 6620 | 10465 | 9405 | |
material price/unit | 20 | 20 | 20 | |
total cost of direct material purchased | 132400[6620*20] | 209300 | 188100 | 529800 |
Step 4:
DIRECT LABOUR BUDGET
particulars | april | may | june |
budgeted production[units] | 13440 | 21040 | 20820 |
labour required per units[hrs] | 0.5 | 0.5 | 0.5 |
total labour hour needed | 6720 | 10520 | 10410 |
labour rate[per hr] | 17 | 17 | 17 |
labour total[$] | 114240 | 178840 | 176970 |
Step 5:
FACTORY OVERHEAD BUDGET
particulars | april | may | june | total |
lab hrs received | 6720[13440*50%] | 10520 | 10410 | |
variable factory OH rate | 3 | 3 | 3 | |
budgeted VOH | 20160 | 31560 | 31230 | 82950 |
budgeted FOH | 21100 | 21100 | 21100 | 63300 |
budgeted total OH | 146250 |
Step 6:
SELLING EXPENSES BUDGET
particulars | april | may | june | total |
budgeted sales | 520000 | 540000 | 522500 | |
sales commission% | 8% | 8% | 8% | |
sales comm | 41600 | 43200 | 41800 | 126600 |
salary | 3200 | 3200 | 3200 | 9600 |
total selling exp | 44800 |
46400 |
45000 | 13620 |
Step 7:
GENERAL AND ADMIN EXPENSE BUDGET
particulars | april | may | june | total |
salary | 14000 | 14000 | 14000 | 42000 |
interest on long term loan[510000*0.7%] | 3570 | 3570 | 3570 | 10710 |
total exp | 17570 | 17570 | 17570 |
Step 8:
CALCULATION OF CASH RECEIPT FROM CUSTOMER
PARTICULARS | april | may | june |
total budgeted sales | 520000 | 540000 | 522500 |
cash sal [30%] | 156000 | 162000 | 156750 |
credit sales[70%] | 364000 | 378000 | 365750 |
Step 9:TOTAL CASH RECEIPTS FROM CUSTOMER AND CASH BUDGET IS ALREADY WORKEDOUT.
Step 10:
BUDGETED INCOME STATEMENT
Result:
Step 11:
Budgeted balance sheet
Prepare the budgeted balance sheet as follows
Result:
The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING...
The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash $ 42,000 Accounts receivable 364,000 Raw materials inventory 107,200 Finished goods 349,440 inventory Total current assets 862, 640 Equipment, gross 604,000 Accumulated (152,000) depreciation Equipment, net 452,000 Total assets $1,314,640 Liabilities and Equity Accounts payable $ 211,300 Short-term notes payable 14,000 Total current liabilities 225,300 Long-term note payable 510,000 Total liabilities 735,300 Common stock 337,000 Retained...
The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash 58,000 484,640 91,290 Accounts receivable Raw materials inventory Finished goods inventory 393,304 Total current assets 1,027,234 Equipment, gross Accumulated depreciation Equipment, net 636,000 168,000) 468,000 $1,495,234 Total assets Liabilities and Equity Accounts payable Short-term notes payable 206,390 30,000 Total current liabilities 236,390 Long-term note payable Total liabilities 525,000 761,390 Common stock 353,000 Retained earnings 380,844 Total...
The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash $ 53,000 Accounts receivable 392,400 Raw materials inventory 96,600 Finished goods inventory 313,920 Total current assets 855,920 Equipment, gross 626,000 Accumulated depreciation (163,000 ) Equipment, net 463,000 Total assets $ 1,318,920 Liabilities and Equity Accounts payable $ 204,800 Short-term notes payable 25,000 Total current liabilities 229,800 Long-term note payable 520,000 Total liabilities 749,800 Common stock 348,000...
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 43,000 432,900 86,198 387,168 949,266 606,000 (153, 000) 453,000 $1,402,266 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 194,798 15,000 209,798 500,000...
The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash $ 42,000 Accounts receivable 364,000 Raw materials inventory 107,200 Finished goods inventory 349,440 Total current assets 862,640 Equipment 604,000 Accumulated depreciation (152,000 ) Equipment, net 452,000 Total assets $ 1,314,640 Liabilities and Equity Accounts payable $ 211,300 Short-term notes payable 14,000 Total current liabilities 225,300 Long-term note payable 510,000 Total liabilities 735,300 Common stock 337,000 Retained...
The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2817 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets $44,888 58e,8e 98,288 444,888 1,878,288 688,888 154,888) 454,88e $ 1,532,288 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...
Слеск 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 $ 50,000 434,240 84,210 368,000 936,450 602,000 (151,000) 451,000 $1,387,450...
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 50,000 434, 240 84,210 368,000 936,450 602,000 (151,000) 451,000 $1,387,450 $...
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 $ 56,000 341,250 84,200 337,680 819,130 632,000 166,008 466,000 $ 1,285,130 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total 1iabilities Common stock Retained earnings Total stockholders' equity Total liabilities and...
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 43,000 432,900 86,198 387,168 949,266 606,000 (153, 000) 453,000 $1,402,266 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...