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 $20,800$ 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 $$26\mathrm{.}00$ per unit and its total product cost is $$21\mathrm{.}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 $5\mathrm{.}360$

pounds. The budgeted June $30$ ending raw materials inventory is $4,200$ 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 $16,640$ units.

d$.$ Each finished unit requires $0\mathrm{.}50$ hour of direct labor at a rate of $$17$ per hour.

e$.$ The predetermined variable overhead rate is $$3\mathrm{.}00$ per direct labor hour. Depreciation of $$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.$

$.$ 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 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 $$42,000.$ 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.

k$.$ Dividends of $$12,000$ are budgeted to be deciared and paid 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.

Required:

Prepare the following budgets for the months of April, May, and June:

Sales budget.

Production budget.

Direct materials budget.

Direct labor budget.

Factory overnead budget.

Selling expense budget.

General and administrative expense budget.

Schedule of casin receipts.

$.$ Schedule of cash payments for direct materials.

Cash budget.

Budgeted income statement for entire second quarter $($not monthly$).$

Budgeted balance sheet at June $30.$