Chapter $22-$ Master Budgeting Project

SavedZIGBY MANUFACTURING

Balance Sheet

March $31$

Assets

Cash

Accounts receivable

Raw materials

inventory

Finished goods

inventory

Equipment

Less: Accumulated

depreciation

Total assets

Liabilities and

Equity

$$168,000$ Liabilities

$1,446,480$ Accounts payable $$844,200$

$413,700$

Loan payable

Long$-$term note

payable

$2,520,000$

$1,367,268$

$630,0001,890,000$

Equity

Common stock

Retained earnings

$ Total liabilities

$5,285,448$ and equity

$1,407,000$

$922,248,2,329,248$

$5,285,448$

To prepare a master budget for April, May, and June, management gathers the following

information.

a$.$ Sales for March total $86,100$ units. Budgeted sales in units follow: April, $86,100$; May,

$81,900$ ; June, $84,000$ ; and July, $86,100.$ The product's selling price is $$24\mathrm{.}00$ per unit

and its total product cost is $$19\mathrm{.}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