The management of Nabar Manufacturing prepared the following balance sheet for June 30. NABAR MANUFACTURING Balance Sheet June 30 Assets Liabilities and Equity Cash..... $ 40,000 Liabilities Accounts receivable 248,920 Accounts payable $ 51,400 Raw materials inventory.. 35,000 Income taxes payable .... 10,000 Finished goods inventory... 241,080 Loan payable.... 24,000 Long-term note payable Equipment... $720,000 Equity Less: Accumulated depreciation... 240,000 480,000 Common stock... Retained earnings Total assets... $1,045,000 Total liabilities and equity 300,000 $385,400 600,000 To prepare a master budget for July, August, and September, use the following information. 59,600 659,600 $1,045,000 a. Sales were 20,000 units in June. Budgeted sales in units follow: July, 21,000; August, 19,000; September, 20,000; and October, 24,000. The product's selling price is $17 per unit and its total product cost is $14.35 per unit. b. Company policy calls for a given month's ending finished goods inventory to equal 70% of the next month's budgeted unit sales. The June 30 finished goods inventory is 16,800 units. c. Raw materials inventory consists solely of direct materials that cost $8 per pound. Company policy calls for a given month's ending materials inventory to equal 20% of the next month's direct materials requirements. The June 30 raw materials inventory is 4,375 pounds. The budgeted September 30 ending raw materials inventory is 1,980 pounds. Each finished unit requires 0.50 pound of direct materials.