The management of Zigby Manufacturing prepared the following balance sheet for March 31 10 prepare a master budget for Apeil, May, and June, management gathers the following information. 0. Sales fot March total 22,500 unats. Budgeted sales in units follow Apri, 22,500, May, 19,500, June, 21,700, and July, 22,500. The product's selling peice is $2300 per unit and its total product cost is $1850 per unit. b. Raw materials inventory consists solely of direct materials that cost $20 per pound company policy calls for a qivee month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materials inventory is 5,025 pounds. The budpeted Jure 30 ending row materials inventory is 5,400 pounds. Each finshed unit requires 0.50 pound of clrect materials. c. Company policy calls for a given montis's ending finished goods inventory to equal sok of the next monthy budgeted unit pales. The March 31 finished goods inventory is 18.000 unis. d. Each finished unit requires 0.50 hour of direct labor at a rate of $ to per hout. - The predetermined variable oveihead rate is $450 per direct labor hotir Deprechation or $30783 per month is the only fixed factory overineaditem. 1. Sales commissions of 6% of sales are paid in the month of the saled. The sales managers monthy salary is $4,400 9. Monthly generat and administrative expenses include $26,000 for administative sabanes and 0.5% monthiy interest on the long: term note payable. h. The company budgets 30% of saies to be for cash and the remaining 70% on credit credit soles are collected in fulf in the month following the sale (no credit sales are collected in the month of sale) 1. All faw materials purchases are on credit, and accounts psyable are solety lied to row materiaks purchases. Raw moterials purchases are fully paid in the next month (nooe are paid in the month of purcbase). 1. The minimum ending cash balance for ail months is $54,000 if necessary, the company barrows enough cast using a loan to feach the minimum, Loans require an interest payment of twat each month-end (oefore any repayment if the manef end preilininary cash balance exceeds the minimum, the excess wil be iised to repoy ary loans. k. Dividends of 524000 are budgeted to be declared and paid in May 1. No cash payments for income taves are budgeted in the second calendar quarter thconie tak will be assessed at 35 win the quarter. and budgeted to be paid in the thitd ealendar quartet. m. Equpenent purchases of $100,000 are budgeted for the last day of June The management of Zigby Manufacturing prepared the following balance sheet for March 31 10 prepare a master budget for Apeil, May, and June, management gathers the following information. 0. Sales fot March total 22,500 unats. Budgeted sales in units follow Apri, 22,500, May, 19,500, June, 21,700, and July, 22,500. The product's selling peice is $2300 per unit and its total product cost is $1850 per unit. b. Raw materials inventory consists solely of direct materials that cost $20 per pound company policy calls for a qivee month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materials inventory is 5,025 pounds. The budpeted Jure 30 ending row materials inventory is 5,400 pounds. Each finshed unit requires 0.50 pound of clrect materials. c. Company policy calls for a given montis's ending finished goods inventory to equal sok of the next monthy budgeted unit pales. The March 31 finished goods inventory is 18.000 unis. d. Each finished unit requires 0.50 hour of direct labor at a rate of $ to per hout. - The predetermined variable oveihead rate is $450 per direct labor hotir Deprechation or $30783 per month is the only fixed factory overineaditem. 1. Sales commissions of 6% of sales are paid in the month of the saled. The sales managers monthy salary is $4,400 9. Monthly generat and administrative expenses include $26,000 for administative sabanes and 0.5% monthiy interest on the long: term note payable. h. The company budgets 30% of saies to be for cash and the remaining 70% on credit credit soles are collected in fulf in the month following the sale (no credit sales are collected in the month of sale) 1. All faw materials purchases are on credit, and accounts psyable are solety lied to row materiaks purchases. Raw moterials purchases are fully paid in the next month (nooe are paid in the month of purcbase). 1. The minimum ending cash balance for ail months is $54,000 if necessary, the company barrows enough cast using a loan to feach the minimum, Loans require an interest payment of twat each month-end (oefore any repayment if the manef end preilininary cash balance exceeds the minimum, the excess wil be iised to repoy ary loans. k. Dividends of 524000 are budgeted to be declared and paid in May 1. No cash payments for income taves are budgeted in the second calendar quarter thconie tak will be assessed at 35 win the quarter. and budgeted to be paid in the thitd ealendar quartet. m. Equpenent purchases of $100,000 are budgeted for the last day of June