To prepare a master budget for Aprll, May, and June, management gathers the following Information. a. Sales for March total 22,300 units. Budgeted sales In unlts follow: Aprll, 22,300; May, 16,300; June, 22,700; and July, 22,300. The product's selling price is $27.00 per unit and Its total product cost is $21.00 per unlt. b. Raw materlals Imventory consists solely of drect materlals that cost $20 per pound. Company pollcy calls for a glven month's ending materlals Inventory to equal 50% of the next month's direct materlals requlrements. The March 31 raw materlals Inventory is 4,375 pounds. The budgeted June 30 ending raw materlals Inventory is 5,200 pounds. Each finlshed unlt requlres 0.50 pound of direct materlals. c. Company pollcy calls for a given month's ending finlshed goods Inventory to equal 80% of the next month's budgeted unlt sales. The March 31 finlshed goods Inventory is 17,840 unlts. d. Each finlshed unit requlres 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined varlable overhead rate Is $3.90 per direct labor hour. Depreclation of $31,672 per month is the only fixed factory overhead Item. t. Sales commlssions of 10% of sales are pald in the month of the sales. The sales manager's monthly salary 1$44,200. g. Monthly general and admlnistratlve expenses Include \$24,000 for adminlstratlve salarles and 0.9% monthly Interest on the long-term note payable. h. The company budgets 30% of sales to be for cash and the remalning 70% on credlt. Credlt sales are collected in full In the month following the sale (no credt sales are collected in the month of sale). I. All raw materlals purchases are on credlt, and accounts payable are solely tled to raw materlals purchases. Raw materlals purchases are fully pald in the next month (none are pald in the month of purchase). J. The minlmum ending cash balance for all months is $65,000. If necessary, the company borrows enough cash using a loan to reach the mnmum. Loans requlre an Interest payment of 1% at each month-end (before any repayment'). If the month-end prellminary cash balance exceeds the minmum, the excess will be used to repay any loans. k. Dividends of $22,000 are budgeted to be declared and pald In M ay. I. No cash payments for Income taxes are budgeted in the second calendar quarter. Income ta will be assessed at 35% in the quarter and budgeted to be pald in the third calendar quarter. m. Equipment purchases of $100,000 are budgeted for the last day of June