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To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 94,300 units. Budgeted sales in

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To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 94,300 units. Budgeted sales in units follow: April, 94,300; May, 89,700; June, 92,000; and July. 94,300 The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit. b. Raw materials imventory 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 inonth's direct materials requirements. The March 31 raw materials inventory is 22,655 pounds. The budgeted June 30 ending raw materials inventory is 18,400 pounds. Each finished unit requires 0.50 pound of direct materials. c. Company policy calis for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 finished good's inventory is 75,440 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour: e. The predetermined variable overhead rate is $270 per direct labor hour. Depreciation of $92.000 per month is the only fixed factory overhead item. f. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is 513,800 9. Monthly general and administrative expenses include $55,200 for administrative salaries and 0.95 monthly interest on the longterm rote payable. h. 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 sate fro credit sales are collected in the month of sale) L. All raw materials purchases are on credit, and accounts payable are solety tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase). J. The minimum ending cash balance for all monthis is $184,000. If necessaty, the company borrows enough cash using a foan to reach the minimum. Loang require ar interest payment of ts at each month end (before any repayment) if the month-end preliminary cash batance exceeds the rninimum, the excess will be used to repay any loans: K. Dividends of $46,000 are budgeted to be declared and paid in May 1. No cash payments for income taxes are budgeted in the second calendar quarter income tax will be assessed at 3508 in the guarter and budgeted to be paid in the third cafendar cuarter m. Equipment purchases of $460,000 are budgeted for the last day of Jure. 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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