Problem 7-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017:

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017

Assets Cash $ 40,000

Accounts receivable 342,248

Raw materials inventory 98,500

Finished goods inventory 325,540

Total current assets 806,288

Equipment, gross 600,000

Accumulated depreciation (150,000 )

Equipment, net 450,000

Total assets $ 1,256,288

Liabilities and Equity Accounts payable $ 200,500

Short-term notes payable 12,000

Total current liabilities 212,500

Long-term note payable 500,000

Total liabilities 712,500

Common stock 335,000

Retained earnings 208,788

Total stockholders equity 543,788

Total liabilities and equity $ 1,256,288

To prepare a master budget for April, May, and June of 2017, management gathers the following information:

a.Sales for March total 20,500 units. Forecasted sales in units are as follows: April, 20,500; May, 19,500; June, 20,000; and July, 20,500. Sales of 240,000 units are forecasted for the entire year. The products selling price is $23.85 per unit and its total product cost is $19.85 per unit.

b.Company policy calls for a given months ending raw materials inventory to equal 50% of the next months materials requirements. The March 31 raw materials inventory is 4,925 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,000 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials.

I only need help with B (Production Budget) I am stuck on how to get Beginning Inventory (units)