The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. Cash ICBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, not Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities: Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity 57,000 464,000 91,600 380,480 993,080 634,000 (167,000) 467,000 $1,460,080 $ 206,300 29,000 235,300 520,000 755,300 352,000 352,780 704,780 $1,460,080 To prepare a master budget for April, May, and June of 2019, management gathers the following information. a. Sales for March total 23,200 units. Forecasted sales in units are as follows: April, 23,200; May, 17,100; June, 21,900; and July, 23,200. Sales of 257,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $20.50 per unit. b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. The March 31 raw materials inventory is 4,580 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,700 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's expected unit sales. The March 31 finished goods inventory is 18,560 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $13 per hour.