The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets S43,000 432,900 86, 198 387,168 949,266 606,000 (153,000) 453, 000 $1,402,266 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 S 194,798 15,000 209, 798 500,000 709,798 338,000 354,468 692,468 $1,402,266 To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 22,200 units. Forecasted sales in units are as follows: April, 22,200; May, 16,000; June, 19,800, and July 22,200. Sales of 243,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $21.80 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 4,310 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,300 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 17,760 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $18 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.00 per direct labor hour Depreciation of $25,134 per month is treated as fixed factory overhead f. Sales representatives' commissions are 9% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,300