Cash Accounts receivable The management of Zigby Manufacturing prepared the following balance sheet for March 31. Assets ZIGBY MANUFACTURING Balance Sheet March 31 $ 59,000 Liabilities Accounts payable 455,000 Raw materials inventory 93,000 Loan payable Finished goods inventory 433,000 Long-term note payable Liabilities and Equity $ 215,400 31,000 500,000 Equipment Less: Accumulated depreciation $ 638,000 169,000 Equity 469,000 Common stock Retained earnings 354,000 $ 746,400 408,600 Total assets $ 1,509,000 Total liabilities and equity 762,600 $ 1,509,000 To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 25,000 units. Budgeted sales in units follow: April, 25,000; May, 17,000; June, 22,400; and July, 25,000. The product's selling price is $26.00 per unit and its total product cost is $21.65 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 4,650 pounds. The budgeted June 30 ending raw materials inventory is 5,900 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 20,000 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour.