Balance sheet

Cash $$200,000$

Accounts receivable $1,722,000$

Raw materials inventory $492,500$

Finished goods inventory $1,627,700$

Equipment $3,000,000$

Less: Accumulated depreciation $750,0002,250,000$

Total assets $$6,292,200$

Liabilities and Equity

Liabilities

Accounts payable $$1,005,000$

Loan payable $12,000$

Long$-$term note payable $2,500,0003,517,000$

Equity

Common stock $1,675,000$

Retained earnings $1,100,2002,775,200$

Total liabilities and equity $$6,292,200$

Question:

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 $24,625$ pounds. The budgeted June $30$ ending raw materials inventory is $20,000$ pounds. Each finished unit requires $0\mathrm{.}50$ pound of direct materials.