Help March 31, 2017 Accounts receivable Raw materials inventory Finished goods i

Question

Help March 31, 2017 Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets $ 65,000 437,760 90,200 308,028 900,988 630,000 ts 165,000) Book 465,000 Print $1,365,988 Liabilities and Equity Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock 204,500 27,000 231,500 515,000 746,500 50,000 269,488 Total stockholders equity Total liabilities and equity $1,365,988 To prepare a master budget for April, May, and June of 2017, management gathers the following information:

Explanation / Answer

Zigby Manufacturing Sales Budget for June 2017 quarter April May June Total Units 22800 16000 23000 61800 Selling Price 24 24 24 24 Sales 547200 384000 552000 1483200 Zigby Manufacturing Production Budget for June 2017 quarter April May June Total Next month's budgeted sales(units) 16000 23000 22800 Ratio of inventory to the future sales 70% 70% 70% Budgeted ending inventory(units) 11200 16100 15960 Budgeted units sales for month 22800 16000 23000 Required units of available production 34000 32100 38960 Beginning inventory (units) -15960 -11200 -16100 Units to be produced 18040 20900 22860 61800 Zigby Manufacturing Raw Materials Budget for June 2017 quarter April May June Total Production budget (units) 18040 20900 22860 Materials requirements per unit 0.5 0.5 0.5 Materials needed for production 9020 10450 11430 Budgeted ending inventory 5225 5715 5500 Total materials requirements (units) 14245 16165 16930 Beginning inventory 4510 5225 5715 Materials to be purchased 14960 16655 16715 48330 Material price per unit 20 20 20 20 Total cost of direct materials purchases 299200 333100 334300 966600 Zigby Manufacturing Direct Labor Budget for June 2017 quarter April May June Total Budgeted production (units) 18040 20900 22860 Labor requirements per unit (hours) 0.5 0.5 0.5 Total Labor hours needed 9020 10450 11430 30900 Labor rate (per hour) 11 11 11 Labor dollars 99220 114950 125730 339900 Zigby Manufacturing Factory overhead Budget for June 2017 quarter April May June Total Labor hours needed 9020 10450 11430 Variable factory overhead rate 4.2 4.2 4.2 Budgeted variable overhead 37884 43890 48006 129780 Budgeted fixed overhead 35020 35020 35020 105060 Budgeted total overhead 72904 78910 83026 234840 Zigby Manufacturing Selling Expense Budget for June 2017 quarter April May June Total Budgeted Sales 547200 384000 552000 Sales commission percent 10% 10% 10% Sales commissions 54720 38400 55200 148320 Sales salaries 4500 4500 4500 13500 Total Selling expenses 59220 42900 59700 161820 Zigby Manufacturing General and administrative Expense Budget for June 2017 quarter April May June Total Salaries 27000 27000 27000 81000 Interest on long-term note 3090 3090 3090 9270 Total Expenses 30090 30090 30090 90270 Calculation of cash receipts from customers April May June Total Total budgeted Sales 547200 384000 552000 Cash Sales 20% 109440 76800 110400 Sales on credit 80% 437760 307200 441600 Total cash receipts from customers April May June Current month's cash sales 109440 76800 110400 Collection of receivables 437760 437760 307200 Total cash receipts 547200 514560 417600 Zigby Manufacturing Cash Budget for June 2017 quarter April May June Beginning cash balance 65000 154016 112546 Cash receipts from customers 547200 514560 417600 Total cash available 612200 668576 530146 Cash disbursements Payments for raw materials 204500 299200 333100 Payments for direct labor 99220 114950 125730 Payments for variable overhead 37884 43890 48006 Sales commissions 54720 38400 55200 Sales Salaries 4500 4500 4500 General & Administrative salaries 27000 27000 27000 Dividends 25000 Loan interest 270 Long-term note interest 3090 3090 3090 Purchase of equipment 145000 Taxes paid 0 0 0 Total cash disbursement 431184 556030 741626 Preliminary cash balance 181016 112546 -211480 Additional loan(loan repayment) 27000 0 266480 Ending cash balance 154016 112546 55000 Zigby Manufacturing Budgeted Income statement for the quarter ended June 2017 Particulars Sales 1483200 Less : Cost of Goods Sold -959700 Gross Profit 523500 Variable manufacturing overhead 129780 Fixed overhead(Depreciation) 105060 234840 Sales commission 148320 Sales salaries 13500 161820 Salary 81000 Interest on long term note 9270 Interest on short term note 270 252360 Net Profit 271140 Less : Tax @ 40% 108456 162684 Less : Dividend 25000 Transfer to retained earnings 137684 Cost of Goods Sold Sold 61800 Direct material 30900 20 618000 Direct Labor 30900 11 339900 COGS 957900 Zigby Manufacturing Budgeted Balance sheet for the quarter ended June 2017 Assets Cash 55000 Accounts receivable 441600 Raw Materials Inventory 5500*20 110000 Finished goods inventory 15960* 247380 Total Current assets 853980 Equipement, gross 630000+145000 775000 Accumulated depreciation 165000+105060 270060 Equipement, net 504940 Total assets 1358920 Liabilities and Equity Accounts payable 334300 Short-term notes payable 266480 Total current liabilities 600780 Long-term note payable 515000 Total Liabilities 1115780 Common Stock 350000 Retained Earnings 269488+137684 407172 Total stockholder's equity 757172 Total Liabilities and Equity 1872952

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