The management of Zigby Manufacturing prepared the following balance sheet for March 31, ZIGBY MANUFACTURING Balance Sheet March 31 Assets Liabilities and Equity. Cash $ 69,000 Liabilities Accounts receivable 390,600 Accounts payable $178,700 Raw materials inventory 85,000 Loan payable Finished goods inventory 348,480 Long-term note payable 19,000 500,000 $ 697,700 Equipment $614,000 Equity Less: Accumulated depreciation 157,000 457,000 Common stock 342,000 Retained earnings 311,380 Total assets $1,351,080 Total liabilities and equity 653,380 $1,351,080 To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 18,000 units. Budgeted sales in units follow: April, 18,000; May, 17,000; June, 20,700, and July, 18,000. The product's selling price is $31.00 per unit and its total product cost is $24.20 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 4,300 pounds. The budgeted June 30 ending raw materials inventory is 4,700 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 14,400 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $22 per hour. e. The predetermined variable overhead rate is $3.40 per direct labor hour. Depreciation of $27,850 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 $3,700. 9. Monthly general and administrative expenses include $19,000 for administrative salaries and 0.6% 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