Funkys Music Factory is preparing budgets for one of its factories for the third quarter of 2023. Relevant information is provided below:

Budgeted Sales for the next five months are as follows:

July - 40,000 units

August - 100,000 units

September 60,000 units

October 50,000 units

November 30,000 units

The selling price per unit is $20.

Funkys plans to collect on sales as follows:

70% collected in the month of sale.

30% collected in the month following sale.

June 30^th accounts receivable of $50,000 will be collect in full in July.

Ending inventory for each month should be equal to 20% of the following months budgeted sales in units.

On June 30^th, 4000 units were on hand.

Five pounds of material are required to produce each unit.

Materials on hand at the end of each month should equal 10% of the following months production.

At June 30^th, 26,000 pounds of material are on hand.

Material cost is $0.80 per pound.

Half of each months purchases is paid for in the month of purchase; the other half is paid in the following month.

June 30^th accounts payable balance is $12,000

Each unit of product requires .05 hours (3 minutes) of direct labor.

Each worker makes $20 per hour.

MOH is applied to units of product based on direct labor hours.

Variable MOH rate is $10 per direct labor hour.

Fixed MOH is 100,000 per month which includes $30,000 of depreciation.

Variable Selling and Administrative expenses are $2.00 per unit.

Fixed Selling and Administrative expenses are $120,000 per month of which $30,000 is depreciation.

Funkys can borrow up to $200,000 at a MONTHLY rate of 1%.

Must Maintain a minimum cash balance of $60,000.

If money is borrowed, it is borrowed on the first day of a month and repaid on the last day of a month.

Dividends paid in August totaled $50,000.

Purchased Equipment of $150,000 in August and $50,000 in September.

July 1^st cash balance is $50,000

Required: Prepare a master budget for the third quarter of Funkys Music Factory.

(You do not need to complete a budgeted balance sheet.)