The management of Zigby Manufacturing prepared the following estimated balance s
ID: 2533077 • Letter: T
Question
The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING 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 $54,000 354,375 100,495 333,000 841,87e 628,000 164,000 464,000 $ 1,305,870 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 212,195 26,000 238,195 514,000 752,195 349,000 204,675 553,675 $ 1,305,870Explanation / Answer
Solution:
Part 1 – Sales Budget
Sales Budget
April, May and June 2017
Budgeted Unit Sales
Budgeted Unit Price
Budgeted Sales Dollars
April.2017
22500
$22.50
$506,250
May.2017
19500
$22.50
$438,750
June.2017
21700
$22.50
$488,250
Total for the second quarter
$1,433,250
Part 2 – Production Budget
Production Budget
April, May and June 2017
April
May
June
Next Month's Expected Unit Sales
19500
21700
22500
Ratio of inventory to future sales
80%
80%
80%
Budgeted Finished Goods Ending Inventory (units)
15600
17360
18000
Add: Budgeted Sales (units)
22500
19500
21700
Required units of available production
38100
36860
39700
Total Needs
60600
56360
61400
Less: Budgeted Beginning Inventory (Ending Finished Goods Inventory of last month)
18000
15600
17360
Units to be produced
42600
40760
44040
Part 3 – Raw materials budget
Raw Materials Budget
April, May and June 2017
April
May
June
Budgeted Production Units
42600
40760
44040
Needs of Raw material per finished unit
0.50
0.50
0.50
Material needed for production
21300
20380
22020
Plus: Ending Inventory of Raw materials (50% of Next Quarter's Production needs)
10190
11010
5400
Total Raw materials needed for production
31490
31390
27420
Less: Beginning Raw material inventory (ending Inventory of previous quarter)
5025
10190
11010
Budgeted Raw Material Purcahse in pounds
26465
21200
16410
Price per unit of raw material
$20
$20
$20
Budgeted cost of Direct materials purchases
$529,300
$424,000
$328,200
Part 4 --- Direct labor budget
Direct Labor Budget
April, May and June 2017
April
May
June
Budgeted Production Units
42600
40760
44040
Direct Labor Hours needed per unit
0.50
0.50
0.50
Total direct labor hours needed
21300
20380
22020
Rate per Direct labor hour
$10
$10
$10
Budgeted Direct Labor Cost
$213,000
$203,800
$220,200
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Pls ask separate question for remaining parts
Sales Budget
April, May and June 2017
Budgeted Unit Sales
Budgeted Unit Price
Budgeted Sales Dollars
April.2017
22500
$22.50
$506,250
May.2017
19500
$22.50
$438,750
June.2017
21700
$22.50
$488,250
Total for the second quarter
$1,433,250
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