Problem $20-4$A $($Algo$)$ Manufacturing: Preparation of a complete master budget LO P$1,$ P$2,$ P$3$

The management of Zigby Manufacturing prepared the following balance sheet for March $31.$

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

a$.$ Sales for March total $65,600$ units. Budgeted sales in units follow: April, $65,600$; May, $62,400$; June, $64,000$; and July, $65,600.$ The product's selling price is $$24\mathrm{.}00$ per unit and its total product cost is $$19\mathrm{.}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 $15,760$ pounds. The budgeted June $30$ ending raw materials inventory is $12,800$ pounds. Each finished unit requires $0\mathrm{.}50$ 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 $52,480$ units.

d$.$ Each finished unit requires $0\mathrm{.}50$ hour of direct labor at a rate of $$15$ per hour.

e$.$ The predetermined variable overhead rate is $$2\mathrm{.}70$ per direct labor hour. Depreciation of $$64,000$ per month is the only fixed

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