0. Sales 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. Raw materials inventory consists solely of direct materials that cost $20 per pound, Company policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials 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 materiaks. c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales The March 31 finished goods inventory is 16,400 units d. Each finished unit requires 0,50 hour of direct labor at a rate of $15 per hour: e. The predetermined variable overhead rate is $270 per direct labor hour. Depreciation of $20.000 per month is the only fixed factory overhead item. 1. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $3,000 9. Monthly general and administrative expenses include $12,000 for administrative salaries and 0.9% monthly interest on the long: term note payable. h. The compary 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) 1. All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases, Raw matecials purchases are fully paid in the next month (none are paid in the month of purchase) 1. The minimum ending cash balance for all months is $40,000 if necessary, the company borrows enough cash using a Joan fo reach the minimum Loans require an interest poyment of 19 at each monthend (before any repayment) if the month-end preliminary cash bolance 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 fncome tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter Budgeted income statement for entire second quarter (not monthly). (Round your final an: 0. Sales 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. Raw materials inventory consists solely of direct materials that cost $20 per pound, Company policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials 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 materiaks. c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales The March 31 finished goods inventory is 16,400 units d. Each finished unit requires 0,50 hour of direct labor at a rate of $15 per hour: e. The predetermined variable overhead rate is $270 per direct labor hour. Depreciation of $20.000 per month is the only fixed factory overhead item. 1. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $3,000 9. Monthly general and administrative expenses include $12,000 for administrative salaries and 0.9% monthly interest on the long: term note payable. h. The compary 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) 1. All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases, Raw matecials purchases are fully paid in the next month (none are paid in the month of purchase) 1. The minimum ending cash balance for all months is $40,000 if necessary, the company borrows enough cash using a Joan fo reach the minimum Loans require an interest poyment of 19 at each monthend (before any repayment) if the month-end preliminary cash bolance 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 fncome tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter Budgeted income statement for entire second quarter (not monthly). (Round your final an