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

Sales for March total $23,300$ units. Budgeted sales in units follow: April, $23,300$; May, $17,000$; June, $21,900$; and July, $23,300.$ The product$$s selling price is $$27\mathrm{.}00$ per unit and its total product cost is $$21\mathrm{.}10$ 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 $4,565$ pounds. The budgeted June $30$ ending raw materials inventory is $5,800$ 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 $18,640$ units.

Each finished unit requires $0\mathrm{.}50$ hour of direct labor at a rate of $$14$ per hour.

The predetermined variable overhead rate is $$4\mathrm{.}50$ per direct labor hour. Depreciation of $$38,357$ per month is the only fixed factory overhead item.

Sales commissions of $10\%$ of sales are paid in the month of the sales. The sales manager$$s monthly salary is $$4,800.$

Monthly general and administrative expenses include $$30,000$ for administrative salaries and $0\mathrm{.}8\%$ 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 $$58,000.$ 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 $$28,000$ 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 $$100,000$ are budgeted for the last day of June.

Required:

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

$1.$ Sales budget.

$2.$ Production budget.

$3.$ Direct materials budget.

$4.$ Direct labor budget.

$5.$ Factory overhead budget.

$6.$ Selling expense budget.

$7.$ General and administrative expense budget.

$8.$ Schedule of cash receipts.

$9.$ Schedule of cash payments for direct materials.

$10.$ Cash budget.

$11.$ Budgeted income statement for entire second quarter $($not monthly$).$

$12.$ Budgeted balance sheet at June $30.$

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