Question

I need help on part 9 & 10 and 8

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets $ 65,000 437,760 90,200 Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets 308,028 900,988 630,000 165,00 Equipment, gross Accumulated depreciation Equipment, net 465,000 1,365,988 Total assets Liabilities and Equity $ 204, 500 Accounts payable Short-term notes payable Total current liabilities 27,000 231,500 Long-term note payable Total 1iabilities 515,000e 746,500 350,000 269,488 Common stock Retained earnings Total stockholders' equity 619,488 $ 1,365,988 Total liabilities and equity To prepare a master budget for April, May, and June of 2017, management gathers the following information To prepare a master budget for April, May, and June of 2017, management gathers the following information a. Sales for March total 22,800 units. Forecasted sales in units are as follows: April, 22,800; May, 16,000; June, 23,000; and July 22,800. Sales of 255,000 units are forecasted for the entire year. The product's selling price is $24.00 per unit and its total product cost is $19.30 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 4,510 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,500 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 15,960 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of $11 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.20 per direct labor hour. Depreciation of $35,020 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 $4,500 g. Monthly general and administrative expenses include $27,000 administrative salaries and 0.6% monthly interest on the long-term note payable h. The company expects 20% of sales to be for cash and the remaining 80% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale) i. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases are fully paid in the next month j. The minimum ending cash balance for all months is $55,000. 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% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance k. Dividends of $25,000 are to be declared and paid in May I. 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. m. Equipment purchases of $145,000 are budgeted for the last day of June Required: Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the second calendar quarter, except as otherwise noted below. (Round calculations up to 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 materials budget. 4. Direct labor budget. . Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Cash budget. 9. Budgeted 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 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Budgeted income statement for the entire second quarter (not for each month separately). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Sales Cost of goods sold Gross proft Operating expenses Sales commissions Sales salaries General administrative salaries Long-term note interest Long-term note interest Income taxes payable Total operating expenses Income before taxes ncome tax Net income Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Reuired 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets Total current assets Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity K Required 9 10 Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Sales budget. (Round Budgeted unit price to 2 decimal places.) ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 Budgeted Budgeted Budgeted Unit Sales Unit Price Sales Dollars 22,800 24.00 547,200 April 2017 16,000 384,000 May 2017 24.00 23,000 24.00 552,000 June 2017 61,800 $ 1,483,200 Totals for the second quarter Required 2> Complete this question by entering your answers in the tabs below. Required 1 Required 2-Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Production budget ZIGBY MANUFACTURING Production Budget April, May, and June 2017 May Total April June 16,000 22,800 Next month's budgeted sales (units) 23,000 70% Ratio of inventory to future sales 70% 70% 16,100 udgeted units sales for month 22,800 15,960 5,500 udgeted ending inventory (units) 5,225 5,715 Required units of available production 28,025 21,815 21,460 Beginning inventory (units) 20 20 20 Units to be produced 18,040 20,900 22,860 61,800 Required 1 Required 3> Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Direct labor budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May June Total Budgeted production (units) 108,040 20,900 22,860 0.50 0.50 abor requirements per unit (hours) 0.50 Total labor hours needed 9,020 11,430 30,900 10,450 11 $ irect labor rate (per hour) 11 S $ 99,220 $ 114,950$ 125,730 $ 339,900 Budgeted direct labor cost K Required 3 Required 5> Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Factory overhead budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2017 Total April May June 9,020 Labor hours needed 10,450 11,430 4.20 $ 4.20 $ ariable factory overhead rate 4.20 $ 37,884 $ 43,890 $ Budgeted variable overhead 48,006 129,780 35,020 Budgeted fixed overhead 35,020 35,020 105,060 78,910 $ 72,904 $ 83,026 $ 234,840 Budgeted total overhead K Required 4 Required 6> Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 Total May April June $625,000 407,500527,500 Budgeted sales 5% 6% 6% Sales commission percent 37,500 S 24,450 $ Sales commissions 31,650$ 93,600 3,400 3,400 3,400 10,200 Sales salaries 40,900 S 27,850 $ 35,050 $ 103,800 otal budgeted selling expenses Required 5 Required 7 > Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Calculation of Cash receipts from customers: June $625,000407,500527,500 Total budgeted sales 81,500 Cash sales 20% 125,000 105,500 80% $ 500,000|$ 326,000|$ 422.000 Sales on credit Total cash receipts from customers June 81,500 105,500 $ 125,000 $ Current month's cash sales Collections of receivables 500,000 500,000 326,000 $ 625,000 $ 581,500 431,500 Total cash receipts ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 June ri 65.000「$ 154,016「$ Beginning cash balance 217,046 514,560 ash receipts from customers 547,200 417,600 Total cash available 612,200 668,576 634,646 Cash payments for: 194,700 Raw materials 204,500 218,800 194,700 Direct labor 992,200 125,730 Variable overhead 37,884 43,890 48,006 3,090 54,720 38,400 Sales commissions Sales salaries 4,500 4,500 4,500 General & administrative salaries 27,000 27,000 27,000 Dividends 25,000 477 Loan interest 270 3,090 3,090 Long-term note interest 3,090 145,000 Purchases of equipment Taxes paid 1,324,164 Total cash payments 575,693 531,280 181,016 6,843 Preliminary cash balance 217,046 Additional loan (loan repayment) (27,000) 48,157 $173,698 217,046 $55,000 Ending cash balance Loan balance April May June Loan balance - Beginning of month 27,000$ 48,157 Additional loan (loan repayment) (27,000) 0 48,157 Loan balance -End of month

Answer 1

ZIGBY MANUFACTURING Sales Budget il, Mav, and June 2017 Budgeted Unit Sales Budgeted Unit Price Budgeted Total Dollars il 2017 2017 22,800 24 547,200 384,000 16,000 24 June 2017 24 552,000 1,483,200 Totals for the quarter 61,800 Production Budget il, Mav, and June 2017 Total Ma June 23,000 70% Next month's budgeted sales (units 16,000 70% 22,800 70% Ratio of inventory to future sales 16,100 Budgeted ending inventory (units 11,200 15,960 Budgeted units sales for month 16,000 Required units of available production 34,000 32,100 38,960 Beginning inventory (units 15,960 18,040 22 860 61,800 Units to be produced 20,900 Raw Materials Budget ril, Mav, and June 2017 Ma June Total 18,040 20,900 0.5 10450 Production budget (units 22,860 0.5 11430 0.5 Materials requirements per unit Materials needed for production 9020 5,225 Budgeted ending invent 5,500 16,930 Total materials requirements (units 14,245 16,165 Beginning inventor 4,510 9,735 20 11,21531890 20 Materials to be purchased 10,940 Material price per unit 20 20 Total cost of direct material purchases 194700 218800 224300 637800

Direct Labor Budget il, Mav, and June 2017 Total Ma June 20,900 Budgeted production (units 18,040 22,860 Labor regirements per unit (hours Total labor hours needed 9,020 10,450 11.43030900 Labor rate (per hour Labor dollars 99220 114950 125730 339900 Factory Overhead Budget il, Mav, and June 2017 Total Ma June 9,020 Labor hours needed 10,450 11,430 Variable factory overhead rate 48006 129780 35,020 105060 83,026 234840 Budgeted variable overhead 37884 43890 Budgeted fixed overhead 35,020 35.020 Budgeted total overhead 72,904 78,910 Selling Expense Budget il, Mav, and June 2017 Total Ma June Budgeted sales 547,200 384,000 552,000 Sales commission percent 10% 10% Sales commissions 54720 38400 55200148320 4.500 4,500 13500 Sales salaries 4,500 59,220 59,700 161,820 Total selling expenses 42,900 General and Administrative Expense Budgets il, Mav, and June 2017 Total Ma June 27000 81000 3,0909270 Salaries 27000 27000 Interest on long-term note (515000.6% 3,090 3,090 Total expenses 30,090 30,090 30,090 90270 Calculation of Cash receipts from customers ril June 384,000 552,000 76800110400 Total budgeted sales 547,200 109440 Cash sales 307200 441600 Sales on credit 437760 Total cash receipts from customers ril June 76800 110400 437,760 307 200 514560 417600 Current month's cash sales 109440 Collections of receivables 437,760 547200 Total cash receipts

Cash Budget il, Mav, and June 2017 ril June Beginning cash balance 65000154016 217046 417600 Cash receipts from customers 547,200514,560 Total cash available 612,200668,576634,646 Cash disbursements Payments for raw materials 204,500194,700 218,800 Payments for direct labor 99,220114,950125,730 Pavments for variable overhead 37,884 43,890 48,006 Sales commissions 54,72038,40055,200 Sales salaries 4,500 4500 General & administrative salaries 27,00027,000 27000 25,000 Dividends 270 Loan interest 3,0903 Long-term note interest 3,090 3,090 Purchases of equipment 145,000 Taxes paid Total cash disbursements 431,184 451,530627,326 Preliminary cash balance 181,016217,0467,320 Additional loan (loan repayment) 27,000 047680 Ending cash balance 154,016217,04655,000 Loan balance June Loan balance Beginning of month 27000 Additional loan (loan repayment 27,000 0 47,680 0 47,680 Loan balance End of month

Budgeted Income statement Budgeted Balance sheet For the three month ended June 30,2017 June 30.2017 sales cost of goods sold (61800 19.3 1483,200 1192740 Current Assets Cash 55,000 441600 308028 110,000 Gross mar 290,460 Account Receivable Finished goods inventory (15960 19.3 Operating expense Sales commissions 148320 Raw material inventory (5500 20 Total Current Assets Sales salaries 13500 914,628 775,000 General administrative salaries 81000 9270 Equipment, Gross (630000+145000 accumulated depreciation (165000+105060 -270060 Longterm note interest 270 Bank loan interest Equipment, net Total Assets 504,940 1,419,568 252360 Total operating expense Incomebefore taxes 38,100 Income tax at 40% 15240 Liabilities and E Net income 22,860 Liabilities Account Pavable 224300 47,680 Bank loan pavable Income tax pavable Total current liabilities 287220 515000 Long term note payable stockholder E Common Stock 350000 Retained Earnings: (269488+22860 267,348 Total stockholder e 617348 Total Liability and Equit 1419568