Question

The management of Zipy Monacturing prepared the wing e d balance for More 2017 Complete this question by entering your answers in the tabs below. Elabili t y Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required Required 10 Budgeted income statement for the entire second quarter (not for each month separately). (Round your final answers to the nearest whole dollar.) To prepare a master budget Agri, May and Jure of 2017 margement gathers the following information ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Sales commissions $ 1.431.000 1,191,000 240.000 Sales for Varch total 20,500 units Forecasted es in unive r s Ary 20,500: May 19,500: June 20,000 and July 20.500. Sales of 240,000 units are forecast for the you. There 's soigrices $23.05 per unit and its total product costs $19.85 DOLL b Cam Polycar r y o utlet The March 31 w ater as inventory 4,925 unts, which comes with the policy. The expected June 30 ending materials Inventory is 4.000 units Raw materias cost $20 brunt tach e d un requires 30 units of w ater c. Company policy calls for a given more sending he goods wentary to al BON of the next montis expected unit Sales The March 31inished goods a y is 16,400 units, ich comes with the balicy c. Each fired untrue 0.50 hours of directo r of $15 per hout Durend located hand andre har hour The mind hie r $2.0 per direct labore Depreciation of $20,000 or months treted as led tactory overhead t Sales representatives' commissions we Ox of sales and are paid in the month of the sains. The sales managers monthy salary is $3.000 Monthly general and administrave expenses de $12.000 d e sales and mo r e on the long-term notes The company expects 30% of sales to be for cash and the remaining 70% on Credit Receivables are collected in all in the month following the sale one se collected in the month of the sale LAI materials purchases are on credit and no payables are from any other transactions. One months ww materials purchases are fully paid in the next month Themeng o 40.000 the high- note to reach the minimum Shatterns rege m ent payment of each month-end before any repayment the ending ces balance exceeds the minimum the wess will be oppled to open the short notes payable blonde Dividends of $10.000 are to be declared and paid in May LN cash pay for income are to be made in the second calendar income tax will be assessed at 35% in the gurt and in the co u rt Equiment purch of STD for you Sales salaries General administrative salaries Bank loan interest expense 150.000 30.400 Total operating expenses income before taxes income tax Net Income $ 0.400 Required: Press the budget de prepared for the second code cept for the amount of cases which should be ww d Al t a monudbe w .foundations up to the nearest whole della own to the whole Recured Required 10 > 2. Production budget 1 4. Det budget 5. Factory Overeed budget 6.Sc ing expense budget 7 General and budget . Ducted income statement for mentre second 10. Budgeted balance sheet o for months

Answer 1

		Zigby Manufacturing
1)	Sales Budget
		April	May	June	Quarter
	Budgeted Unit Sales=(A)	20500	19500	20000	60000
	Selling Price per unit=(B)	$                    23.85	$                    23.85	$                     23.85	$                               23.85
	Total Sales=(A)*(B)	$        4,88,925.00	$        4,65,075.00	$         4,77,000.00	$                 14,31,000.00
2)	Schedule of Production Budget
		April	May	June	Total
	Budgeted Unit Sales=(A)	20500	19500	20000	60000
	Add: Desired ending inventory=(B)	15600	16000	16400	16400
	Total Needs=(C )=(A)+(B)	36100	35500	36400	76400
	Less: Beginning Inventory=(D)	16400	15600	16000	16400
	Required Production=(C )-(D )	19700	19900	20400	60000
		April	May	June
	Desired Ending Inventory	(19500*80%)	(20000*80%)	(20500*80%)
	Beginning Inventory		(19500*80%)	(20000*80%)
3)	Schedule of Raw Material Purchased Budget
		April	May	June	Total
	Required Production=(A)	19700	19900	20400	60000
	Unit of raw material needed per unit of finished goods=(B)	0.5	0.5	0.5	0.5
	Raw Material required=(C )=(A)*(B)	9850	9950	10200	30000
	Add: Ending Inventory=(D)	4975	5100	4000	4000
	Total Units of raw material needed=(E )=(C )+(D)	14825	15050	14200	34000
	Less: Beginning Inventory=(F )	4925	4975	5100	4925
	Total Raw Material Purchased=(G)=(E )-(F)	9900	10075	9100	29075
	Each unit of raw material cost =(H)	$                    20.00	$                    20.00	$                     20.00	$                               20.00
	Total Raw Material Cost=(G)*(H)	$        1,98,000.00	$        2,01,500.00	$         1,82,000.00	$                   5,81,500.00
		Ending Inventory
	April	(9950*50%)
	May	(10200*50%)
	Schedule of Direct Labor cost
4)		April	May	June	Total
	Required Production=(A)	19700	19900	20400	60000
	Direct Labor hours per unit=(B)	0.5	0.5	0.5	0.5
	Total Direct Labor hours needed =(C )=(A)*(B)	9850	9950	10200	30000
	Direct Labor cost per hours=(D)	$                    15.00	$                    15.00	$                     15.00	$                               15.00
	Total direct labor cost=(C )*(D)	$        1,47,750.00	$        1,49,250.00	$         1,53,000.00	$                   4,50,000.00
5)	Schedule of Manufacturing Overhead cost
		April	May	June	Quarter
	Total Direct Labor Hours=(A)	9850	9950	10200	30000
	Variable Overhead cost Per unit of direct labor hours=(B)	$                       2.70	$                      2.70	$                        2.70	$                                 2.70
	Total Variable cost=(C )=(A)*(B)	$            26,595.00	$            26,865.00	$             27,540.00	$                       81,000.00
	Fixed Overhead=(D )	$            20,000.00	$            20,000.00	$             20,000.00	$                       20,000.00
	Total Overhead=(C )+(D)	$            46,595.00	$            46,865.00	$             47,540.00	$                   1,01,000.00
	Schedule of Selling Expenses
6)		April	May	June	Quarter
	Sales Commission=(Sales*8%)	39,114.00	37,206.00	38,160.00	1,14,480.00
	Sales Representative salaries	$              3,000.00	$              3,000.00	$               3,000.00	$                         9,000.00
	Total Selling & Administrative expenses	$            42,114.00	$            40,206.00	$             41,160.00	$                   1,23,480.00
7)	General and Administrative expense
	General Administrative Salaries	$            12,000.00	$            12,000.00	$             12,000.00	$                       36,000.00
	Interest on long term note payable($500000*.90)	$              4,500.00	$              4,500.00	$               4,500.00	$                       13,500.00
	Total General and Administrative expenses	$            16,500.00	$            16,500.00	$             16,500.00	$                       49,500.00