Question

They 70% on The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 To prepare a master budget for April May and June of 2017, management gothers the following information: Sales for March total 20,800 units Forecasted sales in units are as follows: April, 20.800, May 21,600, June, 20,900, and July, 20,000. Sales of 242.000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $21.00 per Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's material requirements. The March 31 raw materials inventory is 5,380 units, which complies with the policy. The expected 4.200 units Raw materials cost $20 per unit. Each finished unt requires 0.50 units of raw materials Company policy calls for a given month's ending finished goods inventory to equal 80% of the next mort's expected salesThe March 31 Grished goods inventory is 16,640 units, which comes win the policy Each finished unit requires 0.50 hours of direct labor at a rate of $17 per hour. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is 53.00 per direct labor hour. Depreciation of $21.100 per month is treated as fred d factory overhead Sales representatives commissions are 8% of sales and are paid in the month of the sale. The sales manager's monthly salary is $3,200 Monthly general and administrative expenses include $14,000 administrative and 0.7% collected in the month of these Al raw materials purchases are on credit, and no payable vise from any other transactions. One mont's raw materials purchases are fully paid in the next The minimum ending cash balance for all months is $42.000. If necessary, the company borrows enough cash using a short-term note to reach the minimum Short-term notes require an interest payment of 1% each month and before any will be applied to repaying the short-term notes payable balance I , he No cash payments for income taxes are to be made during the second calendar Quarter Income tax will be assessed at 40% in the quarter and paid in the third Calendar Quarter - Equipment purchases of $132.000 are budgeted for the last day of June Required: Prepare the following budgets and other financial information as required AB budgets and other financial Information should be prepared for the second the nearest whole dollar, except for the amount of cash sales, which should be rounded down to the nearest whole dollar.) 1. Sales budget 2. Production budget 3. Raw materiale budget 4. Direct labor budget 5. Factory overhead budget 6. Selling expense budget 7. General and administrative expense budget 8. Cash budget 9. Budpeted income statement for the entire second quarter (not for each month separately) 10. Budgeted balance sheet Complete this question by entering your answers in the tabs below. General and administrative expense budget

Answer 1

ZIGBY MANUFACTURING
General and Administrative Expense Budgets
April, May, and June 2017
	April	May	June	Total
Salaries	14,000	14,000	14,000	42,000
Interest on long-term note (510,000*0.7%)	3,570	3,570	3,570	10,710
Total budgeted G&A expenses	17,570	17,570	17,570	52,710