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

o prepare a master budget for April, May, and June, management gathers the following information.

a$.$ Sales for March total $61,500$ units. Budgeted sales in units follow: Aprll, $61,500$; May, $58,500$; June, $60,000$; and July, $61,500.$ 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 glven month's ending materlals inventory to equal $50\%$ of the next month's direct materlals requirements. The March $31$ raw materlals inventory Is $14,775$ pounds. The budgeted June $30$ ending raw materlals inventory is $12,000$ pounds. Each finished unit requires $0\mathrm{.}50$ pound of direct materlals.

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 $49\mathrm{.}200$ units.

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

e$.$ The predetermined varlable overhead rate is $$270$ per direct labor hour. Depreclation of $$60,000$ per month is the only fixed factory overhead item.

t$.$ Sales commissions of $8\%$ of sales are paid in the month of the sales. The sales manager's monthly salary is $$9,000.$

g$.$ Monthly general and administrative expenses include $$36,000$ for administrative salarles and $0\mathrm{.}9\%$ 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$).$

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

J$.$ The minimum ending cash balance for all months is $$120,000.$ 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 preliminary cash balance exceeds the minimum, the excess will be used to repay any loans.