To prepare a master budget for Aprll, May, and June, management gathers the following Information.

a$.$ Sales for March total $61,500$ units. Budgeted sales In units follow: Aprll, $61,500$; May, $58,500$; June, $60,000$; and July, $61,500.$ The

product's selling price is $$24\mathrm{.}00$ per unit and its total product cost is $$19\mathrm{.}85$ per unit.

b$.$ Raw materlals Inventory consists solely of direct materlals that cost $$20$ per pound. Company policy calls for a glven month's

ending materlals inventory to equal $50\%$ of the next month's direct materlals requirements. The March $31$ raw materlals Inventory

Is $14,775$ pounds. The budgeted June $30$ ending raw materlals Inventory is $12,000$ pounds. Each finished unit requlres $0\mathrm{.}50$

pound of direct materlals.

c$.$ Company policy calls for a glven month's ending finished goods inventory to equal $80\%$ of the next month's budgeted unit sales.

The March $31$ finished goods Inventory is $49,200$ units.

d$.$ Each finished unit requires $0\mathrm{.}50$ hour of direct labor at a rate of $$15$ per hour.

e$.$ The predetermined varlable overhead rate is $$2\mathrm{.}70$ per direct labor hour. Depreclation of $$60,000$ 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 $$9,000.$

g$.$ Monthly general and administratlve expenses Include $$36,000$ for administratlve salarles and $0\mathrm{.}9\%$ monthly interest on the long$-$

term note 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 sale $($no credit sales are collected in the month of sale$).$

I. All raw materlals purchases are on credit, and accounts payable are solely tied to raw materlals purchases. Raw materlals

purchases are fully paid in the next month $($none are pald in the month of purchase$).$

J$.$ The minimum ending cash balance for all months is $$120,000.$ 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.

k$.$ Dividends of $$30,000$ are budgeted to be declared and paid in May.

I. 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.

m$.$ Equlpment purchases of $$300,000$ are budgeted for the last day of June.

Required:

Sales budget.

Production budget.

Direct materlals budget.

Direct labor budget.

Factory overhead budget.

Selling expense budget.

General and administratlve expense budget.

Schedule of cash recelpts.

Schedule of cash payments for direct materlals.

Cash budget.

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

Budgeted balance sheet at June $30.$