a. Sales for March total 82,000 units. Budgeted sales In unlts follow: Aprll, 82,000; May, 78,000; June, 80,000; and July, 82,000. The product's selling price is $24.00 per unlt and its total product cost is $19.85 per unit. b. Raw materlals Inventory consists solely of direct materlals that cost $20 per pound. Company policy calls for a given month's ending materlals Inventory to equal 50% of the next month's direct materlals requlrements. The March 31 raw materlals Inventory Is 19,700 pounds. The budgeted June 30 ending raw materlals Inventory is 16,000 pounds. Each finished unit requires 0.50 pound of direct materlals. c. Company policy calls for a given month's ending finlshed goods inventory to equal 80% of the next month's budgeted unlt sales. The March 31 finished goods inventory is 65,600 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined varlable overhead rate is $2.70 per direct labor hour. Depreclation of $80,000 per month is the only fixed factory overhead Item. f. Sales commissions of 8% of sales are paid In the month of the sales. The sales manager's monthly salary is $12,000. g. Monthly general and admInIstratlve expenses Include $48,000 for adminIstratlve salarles and 0.9% monthly Interest on the longterm note payable. h. The company budgets 30% of sales to be for cash and the remalning 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). I. All raw materlals purchases are on credit, and accounts payable are solely tled to raw materlals purchases. Raw materlals purchases are fully pald in the next month (none are pald in the month of purchase). J. The minimum ending cash balance for all months is $160,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an Interest payment of 1% at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $40,000 are budgeted to be declared and pald In May. I. No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be pald In the third calendar quarter. m. Equipment purchases of $400,000 are budgeted for the last day of June. ,,,, Direct materials budget. Note: Round per unit values to 2 decimal places. a. Sales for March total 82,000 units. Budgeted sales In unlts follow: Aprll, 82,000; May, 78,000; June, 80,000; and July, 82,000. The product's selling price is $24.00 per unlt and its total product cost is $19.85 per unit. b. Raw materlals Inventory consists solely of direct materlals that cost $20 per pound. Company policy calls for a given month's ending materlals Inventory to equal 50% of the next month's direct materlals requlrements. The March 31 raw materlals Inventory Is 19,700 pounds. The budgeted June 30 ending raw materlals Inventory is 16,000 pounds. Each finished unit requires 0.50 pound of direct materlals. c. Company policy calls for a given month's ending finlshed goods inventory to equal 80% of the next month's budgeted unlt sales. The March 31 finished goods inventory is 65,600 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined varlable overhead rate is $2.70 per direct labor hour. Depreclation of $80,000 per month is the only fixed factory overhead Item. f. Sales commissions of 8% of sales are paid In the month of the sales. The sales manager's monthly salary is $12,000. g. Monthly general and admInIstratlve expenses Include $48,000 for adminIstratlve salarles and 0.9% monthly Interest on the longterm note payable. h. The company budgets 30% of sales to be for cash and the remalning 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). I. All raw materlals purchases are on credit, and accounts payable are solely tled to raw materlals purchases. Raw materlals purchases are fully pald in the next month (none are pald in the month of purchase). J. The minimum ending cash balance for all months is $160,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an Interest payment of 1% at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $40,000 are budgeted to be declared and pald In May. I. No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be pald In the third calendar quarter. m. Equipment purchases of $400,000 are budgeted for the last day of June. ,,,, Direct materials budget. Note: Round per unit values to 2 decimal places