ter 20-Homework Help The management of Zigby Manufacturing prepared the followin
ID: 2438617 • Letter: T
Question
ter 20-Homework Help The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 Cash 80,000 64, 000 96,000 inished goods inventory quipmeat, gross Equipment, net 155,000) $1,359,?00 195,SDO Liabilities and Equity Accoants payable Total current 1iabi1ities Long-term note payable Total stookholders eqaity Total liabilities and eqalty To prepare a master budget for April, May, and June of 2017, management gathers the following information a. Sales for March total 20,000 units. Forecasted sales in units are as follows: April, 20,000; May. 19,000; June, 19,500, and July b. Company policy calls for a given month's ening raw materials inventory to equal SO% of the neat morth's materiais requirements. c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's expected unit sales. 20,000. Sales of 245,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $22 80 per unit The March 31 raw materials inventory is 4,800 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,500 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. The March 31 finished goods inventory is 16,000 units, which complies with the policy Prev 1 of 1 MacBook Air 308F F6Explanation / Answer
Per Chegg guidelines, 4 sub-parts have been answered.
1 ZIGBY MANUFACTURING Sales Budget April, May, and June 2017 Budgeted unit sales Budgeted unit price Budgeted sales dollars April 2017 20000 26.00 520000 May 2017 19000 26.00 494000 June 2017 19500 26.00 507000 Totals for the second quarter 58500 1521000 2 ZIGBY MANUFACTURING Production Budget April, May, and June 2017 April May June Next month's budgeted sales (units) 19000 19500 20000 Ratio of inventory to future sales 80% 80% 80% Budgeted ending inventory (units) 15200 15600 16000 Budgeted unit sales for month 20000 19000 19500 Required units of available production 35200 34600 35500 Beginning inventory (units) 16000 15200 15600 Units to be produced 19200 19400 19900 3 ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2017 April May June Production budget (units) 19200 19400 19900 Material required per unit of production 0.5 0.5 0.5 Materials needed for production 9600 9700 9950 Ending inventory @ 50% next months material requirements 4850 4975 4500 Total material requirements (units) 14450 14675 14450 Beginning inventory (units) 4800 4850 4975 Materials to be purchased 9650 9825 9475 Material price per unit $ 20 20 20 Budgeted raw material purchases 193000 196500 189500 4 ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May June Total Budgeted production units 19200 19400 19900 58500 Direct labor hours required per unit 0.5 0.5 0.5 0.5 Total labor hours needed 9600 9700 9950 29250 Direct labor rate per hour $ 20 20 20 20 Budgeted direct labor cost 192000 194000 199000 585000Related Questions
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