Question

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 $ 194,798 15,000 209,798 500,000 709,798 338,000 354,468 692,468 $1,402,266

Answer 1

As per policy, only four parts of a question are allowed to answer at a time, so answering first five parts here :

1. Sales Budget
	Apr	May	June	Calculations:
Estimated sales	22200	16000	19800
Selling price per unit	26	26	26
Total Sales	577200	416000	514800
2. Production budget
	Apr	May	June
Estimated sales	22200	16000	19800
add: Ending stock	12800	15840	17760	80% of next month sales
Total requirement	35000	31840	37560
Less: Begin stock	17760	12800	15840
Production required	17240	19040	21720
3. Raw materials budget
	Apr	May	June
Production required	17240	19040	21720
Requirement of RM for Produ.	8620	9520	10860	0.5 unit per finished unit
Add:Ending Bal.	4760	5430	4300	50% of next month req.
Total required	13380	14950	15160
Less:begin bal.	4310	4760	5430
Raw Mat. Purchased	9070	10190	9730
Cost per unit	$20	$20	$20
total RM purchased cost	$181,400	$203,800	$194,600
4. Direct labor budget
	Apr	May	June
Production required	17240	19040	21720
Labor hours reqd.	8620	9520	10860	0.50 h per finished unit
Labor rate per hour	$18	$18	$18
Total Labor cost	$155,160	$171,360	$195,480
5. Factory Overhead budget
	Apr	May	June
Labor hours reqd.	8620	9520	10860
Overhead rate	$3	$3	$3
Total V. Fact. Overhead	$25,860	$28,560	$32,580
Total Fixed Fact overhead	25134	25134	25134
Total Factory overhead	$50,994	$53,694	$57,714