Budgeted balance sheet at June $30.$

Note: Round your final answers to the nearest whole dollar.A $.$Sales for March total $73,800$units$.$ Budgeted sales in units follow: April, $73,800$ ; May, $70,200$ ; June, $72,000$ ; and July, $73,800.$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 $$ s direct materials requirements. The March $31$raw materials inventory is $17,730$pounds$.$ The budgeted June $30$ending raw materials inventory is $14,400$pounds$.$ Each finished unit requires $0.50$pound of direct materials. C $.$Company policy calls for a given month $$ s ending finished goods inventory to equal $80\%$of the next month $$ s budgeted unit sales. The March $31$finished goods inventory is $59,040$units$.$ D $.$Each finished unit requires

$0$

$.$

$5$

$0$

$$hour of direct labor at a rate of $

$1$

$5$

$$per hour.

E

$.$

$$The predetermined variable overhead rate is $

$2$

$.$

$7$

$0$

$$per direct labor hour. Depreciation of $

$7$

$2$

$,$

$0$

$0$

$0$

$$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 $

$1$

$0$

$,$

$8$

$0$

$0$

$.$

G

$.$

Monthly general and administrative expenses include $

$4$

$3$

$,$

$2$

$0$

$0$

$$for administrative salaries and

$0$

$.$

$9$

$\%$

$$monthly interest on the long

$-$

term note payable.

H

$.$

$$The company budgets

$3$

$0$

$\%$

$$of sales to be for cash and the remaining

$7$

$0$

$\%$

$$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 materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month

$($

none are paid in the month of purchase

$)$

$.$

J

$.$

The minimum ending cash balance for all months is $

$1$

$4$

$4$

$,$

$0$

$0$

$0$

$.$

$$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 $

$3$

$6$

$,$

$0$

$0$

$0$

$$are budgeted to be declared and paid in May.

L

$.$

$$No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at

$3$

$5$

$\%$

$$in the quarter and budgeted to be paid in the third calender quarter.

M

$.$

Equipment purchases of $

$3$

$6$

$0$

$,$

$0$

$0$

$0$

$$are budgeted for the last day of June. Schedule of cash receipts.

Schedule of cash payments for direct materials.The management of Zigby Manufacturing prepared the following balance sheet for March $31.$

$\backslash$table$[[\backslash$table$[[$ZIGBY MANUFACTURING$],[$Balance Sheet$],[$March $31]]],[$Assets$,$Liabilities and Equity$],[$Cash$,,$$$144,000,$Liabilities,,$],[$Accounts receivable,,$1,239,840,$Accounts payable,$$723,600,],[$Raw materials inventory,,$354,600,$Loan payable,$12,000,],[$Finished goods inventory,,$1,171,944,$Long$-$term note payable,$1,800,000,$$$2,535,600],[$Equipment$,$$$2,160,000,,$Equity,,$],[$Less: Accumulated depreciation,$540,000,1,620,000,$Common stock,$1,206,000,],[,,$Retained earnings,$788,784,1,994,784],[$Total assets,,$$4,530,384,$Total liabilities and equity,,$$4,530,384]]$

To prepare a master budget for April, May, and June, management gathers the following information.