ZIGBY MANUF Estimated Balance Sheet March 31 2017 Assets Cas

ZIGBY 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 $ 51,000 483,600 94,100 443,520 1,072,220 622,000 (161,000) 461,000 $1,533,220 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retainkd earnings Total stockholders equity 211,400 23,000 234,400 515,000 749,400 346,000 437,820 783,820 $1,533,220 Total liabilities and equity

Solution

Requirement 4 ZIGBY MANUFACTURING Direct Labour Budget April,May and June 2017 April May June Total Budgeted Production (units) 18820 20520 23460 62800 Direct Labour hours required per unit 0.5 0.5 0.5 0.5 Total Labour hours needed 9410 10260 11730 31400 Direct Labour rate per hour $26 $26 $26 $26 Budgeted Direct Labour cost $244,660 $266,760 $304,980 $816,400 Working Calculation of budgeted Production April May June Sales (units) 24000 16600 22200 Add : Ending Inventory (units) 11620 15540 16800 Less : Beginning Inventory (units) 16800 11620 15540 Budgeted Production 18820 20520 23460 Requirement 5 ZIGBY MANUFACTURING Factory Overhead Budget April,May and June 2017 April May June Total Labour hours needed 9410 10260 11730 31400 Variable Overhead rate per direct labour hour $3.80 $3.80 $3.80 $3.80 Budgeted Variable Overhead $35,758 $38,988 $44,574 $119,320 Budgeted Fixed Overhead $31,400 $31,400 $31,400 $94,200 Budgeted Total Overheads $67,158 $70,388 $75,974 $213,520 Requirement 6 ZIGBY MANUFACTURING Selling Expense Budget April,May and June 2017 April May June Total Budgeted Sales (units) 24000 16600 22200 62800 Selling price per unit $31 $31 $31 $31 Budgeted Sales   $744,000 $514,600 $688,200 $1,946,800 Sales Commission % 5% 5% 5% 5% Sales Commission $37,200 $25,730 $34,410 $97,340 Sales Manager Salary $4,100 $4,100 $4,100 $12,300 Total Sales Expense $41,300 $29,830 $38,510 $109,640