The management of Zigby Manufacturing prepared the following balance sheet for March 31. 2145Y MANUFACTURING Balance...
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The management of Zigby Manufacturing prepared the following balance sheet for March 31. 2145Y MANUFACTURING Balance Sheet Harch 1 Assets Liabilities and Equity Cash Accounts receivable 140,000 Liabilities 344,400 Accounts payable $201,000 Rav materials inventory Finished goods inventory 98,500 Loan payable 325,540 Long-tern bote payable. 12,000 300,000 $713,000 Equipment Lesss Accumulated depreciation 600,000 150,000 Equity 450,000 Common stock 335,000 Retained earninge Total assets EPESH440 Total liabilities and equity 210,440 3,258,440 545,440 To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 20,500 units. Budgeted sales in units follow: April, 20,500; May, 19,500; June, 20,000; and July, 20,500. The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit b. Raw materials Inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materials Inventory is 4,925 pounds. The budgeted June 30 ending raw materials inventory is 4,000 pounds. Each finished unit requires 0.50 pound of direct materials c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 finished goods inventory is 16,400 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined variable overhead rate is $2.70 per direct labor hour Depreciation of $20,000 per month is the only fixed factory overhead item. 1. Seles commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $3,000. g. Monthly general and administrative expenses include $12,000 for administrative salaries and 0.9% monthly interest on the long- term note payable. h. The company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of saloj 1. All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none ere peld in the month of purchese). J. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 1% at each month-end before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $10,000 are budgeted to be declared and peld in May. 1. No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter m. Equipment purchases of $100,000 are budgeted for the last day of June. Required: Prepare the following budgets for the months of April, May, and June: 1. Seles budget 2. Production budget 3. Direct materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget, 7. Generel and administrative expense budget. 1. All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase). J. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 1% at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $10,000 are budgeted to be declared and paid in May. 1. No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter. m. Equipment purchases of $100,000 are budgeted for the last day of June. Required: Prepare the following budgets for the months of April, May, and June: 1. Sales budget. 2. Production budget. 3. Direct materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget 11. Budgeted Income statement for entire second quarter (not monthly) 12. Budgeted balance sheet at June 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req S Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Sales budget. ZIGBY MANUFACTURING Sales Budgets April May June Budgeted sales units Selling price per unit Total budgeled sales $ 0 $ 0 $ Req 2 > Complete this question by entering your answers in the tabs below. Req A Req 3 Req 41 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Sales budget. Req 2 ZIGBY MANUFACTURING Sales Budgets April May June Budgeted sales units Selling price per unit Total budgeted sales $ 0 $ 10 $ Req 2 > Complete this question by entering your answers in the tabs below. Req 1 Production budget. Req 3 Req 4 Req S Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Budgeted sales units Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Linits to produce ZIGBY MANUFACTURING Production Budget April May Juno Total 19,500 80% 20,000 20,500 80% 80% Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3 Req 4 Req S Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Direct materials budget. (Round per unit values to 2 decimal places.) Knits to produce ZIGBY MANUFACTURING Direct Materials Budget + April May June Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound; Cost of direct materials purchases References 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget. 11. Budgeted income statement for entire second quarter (not monthly) 12. Budgeted balance sheet at June 30, Complete this question by entering your answers in the tabs below. Req Req 2 Req 3 Req 4 Req S Req6 Req 7 Req 8 to 10 Req 11 Req 12 Direct labor budget. (Round per unit values to 2 decimal places.) Units to produc Direct labor hours needed Cost of direct laber ZIGGY MANUFACTURING Direct Labor Budget April May Junn Total 9 neferences 4. Direct labor budget 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget 8. Schedule of cash receipts, 9. Schedule of cash payments for direct materials 10. Cash budget. 11. Budgeted Income statement for entire second quarter (not monthly) 12. Budgetod balance sheet at June 30. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3 Req 4 Req Req6 Req 7 Req & to 10 Req 11 Req 12 Factory overhead budget. (Round variable everhead rate values to 2 decimal places.) Direct labor hours needed Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted faced overhead Budgeted total factory overhead ZIGBY MANUFACTURING Factory Overhead Budget April May June Total Reg 41 Req6 > References 6. Selling expense budget. 7. General and administrative expense budget. 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget 11. Budgeted income statement for entire second quarter (not monthly) 12. Budgeted balance sheet at June 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 41 Req 5 Req6 Req 7 Req 8 to 10 Req 11 Req 12 Selling expense budget. A ZIGBY MANUFACTURING Selling Expense Budget April May Jane Budgeted sales Sales commissions Pr References 1. Sales budget. 2. Production budget. 3. Direct materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Schedule of cash receipts 9. Schedule of cash payments for direct materials 10. Cash budget 11. Budgeted income statement for entire second quarter (not monthly) 12. Budgeted balance sheet et June 30, Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Reg 8 to 10 Req 11 Req 12 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgs! April May Total general and administrative expenses June Req 8 to 10 > leht for chitale second quarter (not monthly) 12. Budgeted balance sheet at June 30.1 Complete this question by entering your answers in the tabs below. Print Req 1 Reg 2 Req 3 Req 4 Req 5 Req6 Req7 Req 6 to 10 Req 11 Req 12 References B. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Sales Cash receipts from Cash sales ZBGY MANUFACTURING Schedule of Cash Receipts Apri May June S 402,000 $ 408,000 $ 480.000 Collections of prior period sales Total cash receipts Schedule of Cash Payments for Direct Materials Malerials purchases Cash payments for Current period purchases Prior period purchases Total cash payments Beginning cash balance Total cash valstie Las Cash payments for April May June 108,000 1 201,500 $ 182.000 Cash Budget April May JUN Show less points Total cash receipts Schedule of Cash Payments for Direct Materia's April $ May June 195.000 $ 201,500 $ 182.000 eBook Malarials purchases Cash payments for P Current period purchases Prior period purchases Berences Total cash payments Beginning cash balance Total cash available Lots: Cash payments for Total cash payments Preliminary cash balance Ending cash balance 0 $ Cash Budget April May June Loan balance Beginning of month Additional loan doan repayment) Inan balanc-End of meath Loan balance April May mead budget 6. Selling expense budget. 7. General and administrative expense budget. 8. Schedule of cash receipts 9. Schedule of cash payments for direct materials. 10. Cash budget. 11. Budgeted income statement for entire second quarter (not monthly) 12. Budgeted balance sheet et June 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Budgeted income statement for entire second quarter (not monthly). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Menthe Ended June 30 Seling, general and administrative expenses Total operating expenses 0 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Budgeted income statement for entire second quarter (not monthly). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Seting, general and administrative expenses Total operating expenses 0 The management of Zigby Manufacturing prepared the following balance sheet for March 31. 2145Y MANUFACTURING Balance Sheet Harch 1 Assets Liabilities and Equity Cash Accounts receivable 140,000 Liabilities 344,400 Accounts payable $201,000 Rav materials inventory Finished goods inventory 98,500 Loan payable 325,540 Long-tern bote payable. 12,000 300,000 $713,000 Equipment Lesss Accumulated depreciation 600,000 150,000 Equity 450,000 Common stock 335,000 Retained earninge Total assets EPESH440 Total liabilities and equity 210,440 3,258,440 545,440 To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 20,500 units. Budgeted sales in units follow: April, 20,500; May, 19,500; June, 20,000; and July, 20,500. The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit b. Raw materials Inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materials Inventory is 4,925 pounds. The budgeted June 30 ending raw materials inventory is 4,000 pounds. Each finished unit requires 0.50 pound of direct materials c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 finished goods inventory is 16,400 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined variable overhead rate is $2.70 per direct labor hour Depreciation of $20,000 per month is the only fixed factory overhead item. 1. Seles commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $3,000. g. Monthly general and administrative expenses include $12,000 for administrative salaries and 0.9% monthly interest on the long- term note payable. h. The company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of saloj 1. All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none ere peld in the month of purchese). J. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 1% at each month-end before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $10,000 are budgeted to be declared and peld in May. 1. No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter m. Equipment purchases of $100,000 are budgeted for the last day of June. Required: Prepare the following budgets for the months of April, May, and June: 1. Seles budget 2. Production budget 3. Direct materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget, 7. Generel and administrative expense budget. 1. All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase). J. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 1% at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $10,000 are budgeted to be declared and paid in May. 1. No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter. m. Equipment purchases of $100,000 are budgeted for the last day of June. Required: Prepare the following budgets for the months of April, May, and June: 1. Sales budget. 2. Production budget. 3. Direct materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget 11. Budgeted Income statement for entire second quarter (not monthly) 12. Budgeted balance sheet at June 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req S Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Sales budget. ZIGBY MANUFACTURING Sales Budgets April May June Budgeted sales units Selling price per unit Total budgeled sales $ 0 $ 0 $ Req 2 > Complete this question by entering your answers in the tabs below. Req A Req 3 Req 41 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Sales budget. Req 2 ZIGBY MANUFACTURING Sales Budgets April May June Budgeted sales units Selling price per unit Total budgeted sales $ 0 $ 10 $ Req 2 > Complete this question by entering your answers in the tabs below. Req 1 Production budget. Req 3 Req 4 Req S Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Budgeted sales units Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Linits to produce ZIGBY MANUFACTURING Production Budget April May Juno Total 19,500 80% 20,000 20,500 80% 80% Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3 Req 4 Req S Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Direct materials budget. (Round per unit values to 2 decimal places.) Knits to produce ZIGBY MANUFACTURING Direct Materials Budget + April May June Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound; Cost of direct materials purchases References 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget. 11. Budgeted income statement for entire second quarter (not monthly) 12. Budgeted balance sheet at June 30, Complete this question by entering your answers in the tabs below. Req Req 2 Req 3 Req 4 Req S Req6 Req 7 Req 8 to 10 Req 11 Req 12 Direct labor budget. (Round per unit values to 2 decimal places.) Units to produc Direct labor hours needed Cost of direct laber ZIGGY MANUFACTURING Direct Labor Budget April May Junn Total 9 neferences 4. Direct labor budget 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget 8. Schedule of cash receipts, 9. Schedule of cash payments for direct materials 10. Cash budget. 11. Budgeted Income statement for entire second quarter (not monthly) 12. Budgetod balance sheet at June 30. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3 Req 4 Req Req6 Req 7 Req & to 10 Req 11 Req 12 Factory overhead budget. (Round variable everhead rate values to 2 decimal places.) Direct labor hours needed Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted faced overhead Budgeted total factory overhead ZIGBY MANUFACTURING Factory Overhead Budget April May June Total Reg 41 Req6 > References 6. Selling expense budget. 7. General and administrative expense budget. 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget 11. Budgeted income statement for entire second quarter (not monthly) 12. Budgeted balance sheet at June 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 41 Req 5 Req6 Req 7 Req 8 to 10 Req 11 Req 12 Selling expense budget. A ZIGBY MANUFACTURING Selling Expense Budget April May Jane Budgeted sales Sales commissions Pr References 1. Sales budget. 2. Production budget. 3. Direct materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Schedule of cash receipts 9. Schedule of cash payments for direct materials 10. Cash budget 11. Budgeted income statement for entire second quarter (not monthly) 12. Budgeted balance sheet et June 30, Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Reg 8 to 10 Req 11 Req 12 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgs! April May Total general and administrative expenses June Req 8 to 10 > leht for chitale second quarter (not monthly) 12. Budgeted balance sheet at June 30.1 Complete this question by entering your answers in the tabs below. Print Req 1 Reg 2 Req 3 Req 4 Req 5 Req6 Req7 Req 6 to 10 Req 11 Req 12 References B. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Sales Cash receipts from Cash sales ZBGY MANUFACTURING Schedule of Cash Receipts Apri May June S 402,000 $ 408,000 $ 480.000 Collections of prior period sales Total cash receipts Schedule of Cash Payments for Direct Materials Malerials purchases Cash payments for Current period purchases Prior period purchases Total cash payments Beginning cash balance Total cash valstie Las Cash payments for April May June 108,000 1 201,500 $ 182.000 Cash Budget April May JUN Show less points Total cash receipts Schedule of Cash Payments for Direct Materia's April $ May June 195.000 $ 201,500 $ 182.000 eBook Malarials purchases Cash payments for P Current period purchases Prior period purchases Berences Total cash payments Beginning cash balance Total cash available Lots: Cash payments for Total cash payments Preliminary cash balance Ending cash balance 0 $ Cash Budget April May June Loan balance Beginning of month Additional loan doan repayment) Inan balanc-End of meath Loan balance April May mead budget 6. Selling expense budget. 7. General and administrative expense budget. 8. Schedule of cash receipts 9. Schedule of cash payments for direct materials. 10. Cash budget. 11. Budgeted income statement for entire second quarter (not monthly) 12. Budgeted balance sheet et June 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Budgeted income statement for entire second quarter (not monthly). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Menthe Ended June 30 Seling, general and administrative expenses Total operating expenses 0 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Budgeted income statement for entire second quarter (not monthly). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Seting, general and administrative expenses Total operating expenses 0
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