Estimated Balance Sheet Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets $48,ee0 438,750 87,900 383,760 958,410 616,000 ok (158,000) 458,000 nces s 1,416,410 Liabilities and Equity s 187,20e 20,000 Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings 207,2 508,000 343,000 358,210 701,210 s 1,416,410 Total liabilities and equity To prepare a master budget for April, May, and June of 2017, management gathers the following information Check my work 1 a. Sales for March total 19500 units. Forecasted sales in units are as follows Apni,19,500, May, 17100, June, 21,300, and July. 19.500 b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements e Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's expected unit sales. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.40 per direct labor hour Sales $2460 per unit 248,000 units are forecasted for the entire year The product's selling price is $30.00 per unit and its total product cost is The March 31 raw materials inventory is 4,395 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,800 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. The March 31 finished goods inventory is 15,600 units, which complies with the policy. eBook d. Each finished unit requires 0.50 hours of direct labor at a rate of $23 per hour Depreciation of $27,020 per month is treated as fixed factory overhead f. Sales repre Print commissions are 7% of sales and are paid in the month of the sales. The sales manager's monthly salary is g Monthly general and administrative expenses include S20000 administrative salaries and 0 5% monthly interest on the long-term h. The company expects 25% of sales to be for cash dnd the remaining 75% on credit. Receivables are collected in full in the month i. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases $3,800 note payable. following the sale (none are collected in the month of the sale) are fully paid in the next month note to reach the minimum short-term notes require an interest payment of 1% at each month-end (before any repayment. If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable ba No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 40% in the j. The minimum ending cash balance for all months is $48.000. If necessary, the company borrows enough cash using a short-term s of $18,000 are to be declared and paid in May quarter and paid in the third calendar quarter m. Equipment purchases of $138,000 are budgeted for the last day of June Prepare the following budgets and other financial information as required All prepared for the second calendar quarter, except except for the amount of cash sales, which should be rounded down to the rearest whole dollar) and other financial information should be as otherwise noted below (Round calculations up to the nearest whole dollar 20 1. Sales budget 2 Production budget 3. Raw materials budget 4. Direct labor budget 5. Factory overhead budget 8. Cash budget 9. Budgeted income statement for the entire second quarter (not for each month separately). 10. Budgeted balance sheet Complete this question by entering your answers in the tabs below 2 Required 3 Required 4