9.37 AM 7/30/2018 dent Orentation LOW221 Mid-Term Exam urnuri https%3A F paamweb
ID: 2434321 • Letter: 9
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9.37 AM 7/30/2018 dent Orentation LOW221 Mid-Term Exam urnuri https%3A F paamweb%2Findex.htm1%23%2Fregistrati Secure https//newconnect.mheducation.com/flow/connect.html?ret Mid-Term Exam Help Saved The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 MANUF Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets $ 56,800 341,250 84,280 337,688 819,130 632,000 166,089) 0207.11 466,00 5 1,285,130 Liabilities and Equity $ 189,888 28,000 Accounts payable Short-ters notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity 217,880 516.00 733,809 351,000 200,330 s 1,285,130 To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 21,000 units Forecasted sales in units are as follows: Apri, 21000: May. 15.800: June, 21600, and July. 21.000 b Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. Sales of 256,000 units are forecasted for the entire year. The product's selling price is $25 00 per unit and its total product cost is $2010 per unit The March 31 raw materials inventory is 4,210 units, which complies with the policy. The expected June 30 ending raw materials nventorv is 5 600 units Raw materials cost $20 ner unit Fach finished unit reauires 0 50 units of raw materials Prey 1 of 1Next e to searchExplanation / Answer
Zigby Manufacturing Sales Budget for June 2017 quarter April May June Total Units 21000 15800 21600 58400 Selling Price 25 25 25 25 Sales 525000 395000 540000 1460000 Zigby Manufacturing Production Budget for June 2017 quarter April May June Total Next month's budgeted sales(units) 15800 21600 21000 Ratio of inventory to the future sales 80% 80% 80% Budgeted ending inventory(units) 12640 17280 16800 Budgeted units sales for month 21000 15800 21600 Required units of available production 33640 33080 38400 Beginning inventory (units) -16800 -12640 -17280 Units to be produced 16840 20440 21120 58400 Zigby Manufacturing Raw Materials Budget for June 2017 quarter April May June Total Production budget (units) 16840 20440 21120 Materials requirements per unit 0.5 0.5 0.5 Materials needed for production 8420 10220 10560 Budgeted ending inventory 5110 5280 5600 Total materials requirements (units) 13530 15500 16160 Beginning inventory 4210 5110 5280 Materials to be purchased 14430 15670 16480 46580 Material price per unit 20 20 20 20 Total cost of direct materials purchases 288600 313400 329600 931600 Zigby Manufacturing Direct Labor Budget for June 2017 quarter April May June Total Budgeted production (units) 16840 20440 21120 Labor requirements per unit (hours) 0.5 0.5 0.5 Total Labor hours needed 8420 10220 10560 29200 Labor rate (per hour) 12 12 12 Labor dollars 101040 122640 126720 350400 Zigby Manufacturing Factory overhead Budget for June 2017 quarter April May June Total Labor hours needed 8420 10220 10560 Variable factory overhead rate 4.3 4.3 4.3 Budgeted variable overhead 36206 43946 45408 125560 Budgeted fixed overhead 37960 37960 37960 113880 Budgeted total overhead 74166 81906 83368 239440 Zigby Manufacturing Selling Expense Budget for June 2017 quarter April May June Total Budgeted Sales 525000 395000 540000 1460000 Sales commission percent 7% 7% 7% 7% Sales commissions 36750 27650 37800 102200 Sales salaries 4600 4600 4600 13800 Total Selling expenses 41350 32250 42400 116000 Zigby Manufacturing General and administrative Expense Budget for June 2017 quarter April May June Total Salaries 28000 28000 28000 84000 Interest on long-term note 2580 2580 2580 7740 Total Expenses 30580 30580 30580 91740 Calculation of cash receipts from customers April May June Total Total budgeted Sales 525000 395000 540000 Cash Sales 35% 183750 138250 189000 Sales on credit 65% 341250 256750 351000 Total cash receipts from customers April May June Current month's cash sales 183750 138250 189000 Collection of receivables 341250 341250 256750 Total cash receipts 525000 479500 445750 Zigby Manufacturing Cash Budget for June 2017 quarter April May June Beginning cash balance 56000 153744 89228 Cash receipts from customers 525000 479500 445750 Total cash available 581000 633244 534978 Cash disbursements Payments for raw materials 189800 288600 313400 Payments for direct labor 101040 122640 126720 Payments for variable overhead 36206 43946 45408 Sales commissions 36750 27650 37800 Sales Salaries 4600 4600 4600 General & Administrative salaries 28000 28000 28000 Dividends 26000 Loan interest 280 Long-term note interest 2580 2580 2580 Purchase of equipment 146000 Taxes paid 0 0 0 Total cash disbursement 399256 544016 704508 Preliminary cash balance 181744 89228 -169530 Additional loan(loan repayment) -28000 0 0 Ending cash balance 153744 89228 -169530 56000 56000 56000 Zigby Manufacturing Budgeted Income statement for the quarter ended June 2017 Particulars Sales 1460000 Less : Cost of Goods Sold 58400*20.10 -1173840 Gross Profit 286160 Operating expenses Sales commission 102200 Sales salaries 13800 General administrative salaries 84000 Short term loan Interest 280 Interest on long term note 7740 208020 Income Before taxes 78140 Tax @ 40% 31256 Net Income 46884 Less : Dividend -26000 Transfer to retained earnings 20884
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