The management of XYZ Manufacturing Company prepared the following estimated balance sheet for June 30, 2015: XYZ Manufacturing Company Estimated Balance Sheet June 30, 2015 ASSETS Cash Accounts receivable Raw materials inventory Finished good inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net TOTAL ASSETS 50,000 249,900 35,000 241,080 575,980 720,000 1240,000) 480.000 1,055,980 161,400 334,000 LIABIUTIES AND EQUITY Accounts payable Note payable Total liabilities Common stock Retained earnings Total stockholders' equity TOTAL LIABILITIES AND EQUITY 495,400 500,000 60,580 560.580 1,055,980 * Equipment is depreciated on a straight-line basis. Other information: a. Sales were 20.000 units in June. Forecasted sales in units are as follows: July 21,000, August 19,000; September, 20,000; October, 24,000. The product's selling price is $23 per unit. b. Company policy calls for a given month's ending finished goods inventory to equal 70% of the next month's expected unit sales. The June 30 finished goods inventory is 14.700 units c. Company policy calls for a given month's ending raw materials inventory to equal 20% of the next month's material requirements. The June 30 raw materials inventory is 4,375 units (which fails to meet the policy.) The budgeted September 30 raw materials inventory is 7,200 units. Raw materials cost $8 per unit. Each finished unit requires 1.5 units of raw materials d. Each finished unit requires 0.5 hours of direct labor at a rate of $16 per hour. All direct laboris paid in the month incurred. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $2 per direct labor hour. Depreciation of $30,000 per month is treated as fixed factory overhead. All variable overhead is paid in the month incurred. 1. The company expects 20% of sales to be for cash and the remaining 80% on credit, Receivables are collected in full in the month following the sale. (No receivables are collected in the month of the sale.) B. Raw materials purchases are on credit, and no payables arise from any other transactions One month's raw materials purchases are fully paid in the next month h. Equipment purchases of $40,000 are budgeted for the last day of September Prepare: 1. Sales budget 2. Production budget 3. Raw materials budget 4. Direct labor budget 5. Factory overhead budget 6. Schedule of cash receipts from sales 7. Schedule of cash payments from raw materials 8. Cash budget