The management of Zigby Manufacturing prepared the following balance sheet for March 31 To prepare a master budger for Apri, May, and June. management gathers the following information. a. Sales for March total 20,800 units, Budgeted sales in units follow. Apri, 20,800: May, 21,600; June, 20,900, and July 20,800. The producr's seling puce is $2600 per unit and its total product cost is $2100 per unit. b. Raw marena/s inventory consists solely of directmaterials that cost $20 per pound Company policy calls for a 9 iven month's ending matetlals inventory to equil 50%6 of the next month's direct materiats requirements. The March 31 raw matetiais inventory is 5.360 pounds the budgeted June 30 ending raw materials inventory is 4.200 pounds. Each finishea unit requifes 050 pound of airect materials. c. Company policy cais for agiven month's ending finished goods inventory to equal 80% of the hext month's bodgeted unit sales. To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 20,800 units. Budgeted sales in units follow: April, 20,800; May, 21,600; June, 20,900; and July, 20,800. The product's selling price is $26.00 per unit and its total product cost is $21.00 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 5,360 pounds. The budgeted June 30 ending raw materials inventory is 4.200 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 16,640 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $17 per hour. e. The predetermined variable overhead rate 15$3.00 per direct labor hour. Depreciation of $21,100 per month is the only fixed factory overhead item f. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $3.200. 9. Monthly general and administrative expenses include $14,000 for administrative salaries and 0.7% monthly interest on the long term note payable h. The company budgets 30% of sales to be for cash and the remaining 70% on credit Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of sale) i. All raw materiais purchases are on credit, and accounts payable are solely tied 10 raw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase) j. The minimum ending cash balance for all months is $42,000. If necessary, the company borrows enough cash using a loan to reach the minimuin. Loans require an interest payment of 19 at each month-end (before any repoyment if the moothiend preliminary cash balance exceeds the minimum. the excess win be used to repav anv loans cash balance exceeds the minimum, the excess will be used to repay any loans. k. Dividends of $12000 are budgeted to be declared and paid in May 1. No cash payments for income taxes are budgeted in the second calendar quarter Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter. m. Equipment purchases of $100,000 are budgeted for the last day of June Required: Prepare the following budgets for the months of Apri. May, and June: 1. Sales budget. 2. Production budget 3. Direct materials budget 4. Direct labor budget. 5. Factory overhead budget 6. Selling expense budget 7. General and administrative expense budget. 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget 11. Budgeted income statement for entre second quarter (not monthly). 12. Budgeted balance sheet at June 30