The management of Zigby Manufacturing prepared the following balance sheet for March $31.$ ZIGBY MANUFACTURING Balance Sheet March $31$ Assets Liabilities and Equity Cash $ $152,000$ Liabilities Accounts receivable $1,308,720$ Accounts payable $ $763,800$ Raw materials inventory $374,300$ Loan payable $12,000$ Finished goods inventory $1,237,052$ Long$-$term note payable $1,900,000$ $ $2,675,800$ Equipment $ $2,280,000$ Equity Less: Accumulated depreciation $570,0001,710,000$ Common stock $1,273,000$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 $53,300$ units. Budgeted sales in units follow: April, $53,300$; May, $50,700$; June, $52,000,$ and July, $53,300.$

The product's selling price is $$24\mathrm{.}00$ per unit and its total product cost is $$19\mathrm{.}85$ 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 $12,805$ pounds. The budgeted June $30$ ending raw materials inventory is $10,400$ pounds. Each finished unit requires $0\mathrm{.}50$

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 $42,640$ units.

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

e$.$ The predetermined variable overhead rate is $$2\mathrm{.}70$ per direct labor hour. Depreciation of $$52,000$ 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 $$7,800.$

g$.$ Monthly general and administrative expenses include $$31,200$ for administrative salaries and $0\mathrm{.}9\%$ 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 materials purchases are on credit, and accounts payable are solely tied to 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 $$104,000.$ If necessary, the company borrows enough cash using a loan to

reach the minimum. Loans require an interest payment of $1\%$ at each month end $($before any repayment$).$ If the month$-$end