The management of Zigby Manufacturing prepared the following estimated balance s
ID: 2480230 • Letter: T
Question
The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 2015:
The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 2015:
ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory $ 69,000 432,000 86,000 348,480 Total current assets Equipment, gross Accumulated depreciation 935,480 614,000 (157,000) Equipment, net 457,000 Total assets $ 1,392,480 Liabilities and Equity Accounts payable Short-term notes payable 178,700 19,000 $ 197,700 515,000 Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings 712,700 342,000 337,780 Total stockholders' equity 679,780 Total liabilities and equity $ 1,392,480Explanation / Answer
Solution:
1) Sales Budget
ZIGBY MANUFACTURING
Sales Budget
April, May and June 2015
Budgeted Unit Sales
Budgeted Unit Price
Budgeted Total Dollars
April 2015
18,000
$30
$540,000
May 2015
17,000
$30
$510,000
June 2015
20,700
$30
$621,000
55,700
$1,671,000
2) Production Budget
ZIGBY MANUFACTURING
Production Budget
April, May and June 2015
April
May
June
Next Month's Budgeted Sales (Units)
17,000
20,700
18,000
Ratio of Inventory to future sales
80%
80%
80%
Ending Inventory
13600
16560
14400
Budgeted Sales Units
18,000
17,000
20,700
Required Units of Available Production
31,600
33,560
35,100
Less: Beginning Inventory
-14,400
-13600
-16560
Units to be produced
17,200
19,960
18,540
3) Raw Material Budget
ZIGBY MANUFACTURING
Raw Materials Budget
April, May and June 2015
April
May
June
Production Budget (units)
17,200
19,960
18,540
Required Raw Material per finished unit (units)
0.5
0.5
0.5
Materials needed for production (units)
8600
9980
9270
Add: Ending Raw Material Inventory
4990
4635
4,700
Total Materials requirements (units)
13590
14615
13970
Less: beginning raw material inventory
-4,300
-4990
-4635
Materials to be purchased
9,290
9,625
9,335
Material Price per unit
$20
$20
$20
Total cost of direct material purchases
$185,800
$192,500
$186,700
4) Direct Labor Budget
ZIGBY MANUFACTURING
Raw Materials Budget
April, May and June 2015
April
May
June
Total
Production Budget (units)
17,200
19,960
18,540
55,700
Per Unit Labor Hours needed (hours)
0.5
0.5
0.5
0.5
Total Labor Hours Needed
8600
9980
9270
27850
Labor Rate per Hour
$22
$22
$22
$22
Labor dollars
$189,200
$219,560
$203,940
$612,700
Please ask separate question for rest part..
ZIGBY MANUFACTURING
Sales Budget
April, May and June 2015
Budgeted Unit Sales
Budgeted Unit Price
Budgeted Total Dollars
April 2015
18,000
$30
$540,000
May 2015
17,000
$30
$510,000
June 2015
20,700
$30
$621,000
55,700
$1,671,000
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