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

ZIGBY MANUFACTURING

Balance Sheet

March $31$

Assets Liabilities and Equity

Cash $ $136,000$ Liabilities

Accounts receivable $1,170,960$ Accounts payable $ $683,400$

Raw materials inventory $334,900$ Loan payable $12,000$

Finished goods inventory $1,106,836$ Long$-$term note payable $1,700,000$ $ $2,395,400$

Equipment $ $2,040,000$ Equity

Less: Accumulated depreciation $510,0001,530,000$ Common stock $1,139,000$

Retained earnings $744,2961,883,296$

Total assets $ $4,278,696$ Total liabilities and equity $ $4,278,696$

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

Sales for March total $69,700$ units. Budgeted sales in units follow: April, $69,700$; May, $66,300$; June, $68,000$; and July, $69,700.$ The product$$s selling price is $$24\mathrm{.}00$ per unit and its total product cost is $$19\mathrm{.}85$ per unit.

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 $16,745$ pounds. The budgeted June $30$ ending raw materials inventory is $13,600$ pounds. Each finished unit requires $0\mathrm{.}50$ pound of direct materials.

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 $55,760$ units.

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

The predetermined variable overhead rate is $$2\mathrm{.}70$ per direct labor hour. Depreciation of $$68,000$ per month is the only fixed factory overhead item.

Sales commissions of $8\%$ of sales are paid in the month of the sales. The sales manager$$s monthly salary is $$10,200.$

Monthly general and administrative expenses include $$40,800$ for administrative salaries and $0\mathrm{.}9\%$ monthly interest on the long$-$term note payable.

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 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$).$

The minimum ending cash balance for all months is $$136,000.$ 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.

Dividends of $$34,000$ are budgeted to be declared and paid in May.

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 paid in the third calendar quarter.

Equipment purchases of $$340,000$ are budgeted for the last day of June.Complete this question by entering your answers in the tabs below.

$\backslash$table$[[$ZIGBY MANUFACTURING$],[$Direct Labor Budget$],[,$April,May,June,Total$],[$Units to produce,$,,,],[,x,x,x,],[$Direct labor hours needed,$x,x,x,0],[x,x,x,x,],[$Cost of direct labor,,,,$]]$