:NOTE THIS IN ONLY ONE QUESTION, also please double check to make sure the answers are not burry, Thank you!

Problem 22-4A (Algo) Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following balance sheet for March 31. Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Less: Accumulated depreciation ZIGBY MANUFACTURING Balance Sheet March 31 Liabilities and Equity $ 46,000 Liabilities 393,960 Accounts payable 96,300 Loan payable 327,831 Long-term note payable $ 196,200 18,000 500,000 $ 714,200 $ 612,000 156,000 Equity 456,000 Common stock Retained earnings Total liabilities and equity 341,000 264,891 605,891 $ 1,320,091 Total assets $ 1,320,091 To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 20,100 units. Budgeted sales in units follow: April, 20,100; May, 18,900; June, 19,700; and July, 20,100. The product's selling price is $28.00 per unit and its total product cost is $23.30 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 4,815 pounds. The budgeted June 30 ending raw materials inventory is 4,600 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 70% of the next month's budgeted unit sales. The March 31 finished goods inventory is 14,070 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $21 per hour. e. The predetermined variable overhead rate is $3.00 per direct labor hour. Depreciation of $25,437 per month is the only fixed factory overhead item. f. Sales commissions of 6% of sales are paid in the month of the sales. The sales manager's monthly salary is $3,600. g. Monthly general and administrative expenses include $18,000 for administrative salaries and 0.5% 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 sale). 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 sale). i. 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 $46,000. 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 $16,000 are budgeted to be declared and paid in May. I. 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. Req 1 Reg 2 Req3 Req 4 Req 5 Req6 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 budgeted sales Reg 1 Req 2 > ZIGBY MANUFACTURING Production Budget April May June Total Budgeted sales units 20,100 18,900 70% 19,700 70% 70% Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Units to produce ZIGBY MANUFACTURING Direct Materials Budget April May June Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases ZIGBY MANUFACTURING Direct Labor Budget April May June Total Units to produce Direct labor hours needed Cost of direct labor June Total ZIGBY MANUFACTURING Factory Overhead Budget April May Direct labor hours needed Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead ZIGBY MANUFACTURING Selling Expense Budget April May June Budgeted sales Sales commissions Req 7 ZIGBY MANUFACTURING General and Administrative Expense Budget April May June Total general and administrative expenses 8. 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.) Show less ZIBGY MANUFACTURING Schedule of Cash Receipts April $ 562,800 $ June May 529,200 $ 551,600 Sales Cash receipts from Cash sales Collections of prior period sales Total cash receipts 191,900 Schedule of Cash Payments for Direct Materials April May Materials purchases $ 193,600 $ 197,200 $ Cash payments for Current period purchases Prior period purchases Total cash payments Cash Budget Cash Budget April May June Beginning cash balance Total cash available Less: Cash payments for: Total cash payments Preliminary cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 0 ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Total assets Liabilities and Equity Liabilities Equity Total Liabilities and Equity