Only work on part "B"

req 2

The management of Zigby Manufacturing prepared the following balance sheet for March 31. To prepare a mastef budget for April, May, and June, management gathers the following information. a. Sales for March total 20,500 units. Budgeted sales in units follow: Aprii, 20,500; May, 19,500; June, 20,000; and July, 20,500. 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 pollcy 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 4,925 pounds. The budgeted June 30 ending raw materials inventory is 4,000 pounds. Fach 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 16,400 unit5. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined variable overhead rate is $2.70 per direct labor houc. Dopreciation of $20,000 per month is the only fixed factory overhead itom. 1. Sales rnimminsians or pik at eales aro nail in the manth af the sales. The ealos mananer's mnnthly calarv is $300 Production budget. Dendiantion huidant