The management of Zigby Manufacturing prepared the following balance sheet for March $31.$

To prepare a master budget for April, May, and June, management gathers the following Information.

a$.$ Sales for March total $23,000$ units. Budgeted sales in units follow: April, $23,000$; May, $15,300$; June, $20,400$; and July, $23,000.$ The product's selling price is $$24\mathrm{.}00$ per unit and its total product cost is $$20\mathrm{.}00$ per unit.

b$.$ Raw materials Inventory consists solely of direct materlals that cost $$20$ per pound. Company policy calls for a given month's ending materlals Inventory to equal $50\%$ of the next month's direct materlals requirements. The March $31$ faw materials inventory is $4,210$ pounds. The budgeted June $30$ ending raw materials Inventory is $4,100$ pounds. Each finished unit requires $0\mathrm{.}50$ pound of direct materials.

c$.$ Company policy calls for a given month's ending finlshed goods Inventory to equal $80\%$ of the next month's budgeted unit sales. The March $31$ finished goods Inventory Is $18\mathrm{.}400$ units.

d$.$ Each finlshed unit requires $0\mathrm{.}50$ hour of direct labor at a rate of $$15$ per hour.

e$.$ The predetermined varlable overhead rate is $$280$ per direct labor hour. Depreciatlon of $$21,523$ per month is the only fixed factory overhead Item.

f$.$ Sales commissions of $10\%$ of sales are pald In the month of the sales. The sales manager's monthly salary is $$3,100.$

$9.$ Monthly general and administrative expenses Include $$13,000$ for administrative salarles and $0\mathrm{.}5\%$ monthly interest on the longterm 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$).$

All raw materlals purchases are on credit, and accounts payable are solely tled to raw materlals purchases. Raw materials purchases are fully pald in the next month $($none are pald in the month of purchase$).$

J$.$ The minimum ending cash balance for all months is $$50,000.$ If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an Interest payment of $1\%$ at each monthend $($before any repayment$).$ If the month$-$end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans.

k$.$ Dividends of $$11,000$ are budgeted to be declared and pald in May.

I. 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 pald in the third calendar quarter.

m$.$ Equipment purchases of $$100,000$ are budgeted for the last day of June.