Management at Zigby Manufacturing prepared a balance sheet for March 31st and gathered information to create budgets for April, May, and June. This includes budgeted sales, production requirements, materials and labor costs, overhead expenses, cash receipts and payments, as well as projected income statements and balance sheets. The assistant was asked to use the information provided to prepare 11 specific budgets for the months in question.

1. The management of Zigby Manufacturing prepared the following balance sheet for March 31 . To
prepare a master budget for April, May, and June, management gathers the following informotion.
B. Salen 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. Row materials inventory consists solely of direct materials that cost $20
per pound. Company policy calls for a given month's ending moterials inventory to equal 50% of
the next month's direct moterials 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 poticy calls for o given month's ending
finished goods inventory to equal 80N of the next month's budgeted unit sales. The March 31
finished goods inventory is 16,400 units d. Eoch finished unt requires 050 hour of direct labor at a
rate of $15 per hour. 6. The predetermined variable overheod rate is $270 per direct labor hour
Depreciaton of $20.000 per month is the only fixed factory ovemead iaem.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 $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 astessed 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 moterials budget 4. Direct labor
budget: 5. Factory overhead budget. 6. Selling expense budget. 7. Generol and administuative
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 30Complete this question by entering your answers in the tabs
below. Sales budget.