Problem 22-4A (Algo) Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following balance sheet for March 31. Cash Accounts receivable. Raw materials inventory Assets ZIGBY MANUFACTURING Balance Sheet March 31 $ 50,000 Liabilities Liabilities and Equity 386,400 Accounts payable. 84,200 Loan payable Finished goods inventory 368,000 Long-term note payable. $ 196,600 12,000 500,000 $ 708,600 Equipment Less: Accumulated depreciation $ 602,000 151,000 Equity 451,000 Common stock Retained earnings 336,000 295,000 631,000 Total assets $ 1,339,600 $ 1,339,600 Total liabilities and equity To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 23,000 units. Budgeted sales in units follow: April, 23,000; May, 15,300; June, 20,400; and July, 23,000. The product's selling price is $24.00 per unit and its total product cost is $20.00 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 4,210 pounds. The budgeted June 30 ending raw materials inventory is 4,100 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 18,400 units. 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 $2.80 per direct labor hour. Depreciation of $21,523 per month is the only fixed