To prepare a master butget for Apni, May, and Jure, management gathers the following information a. Sales for March total 21,000 units. Budgeted sales in units follow: Apvil, 21,000: May, 15,800; June, 21,600; and July, 21,000, The products selling price is $2600 per unit and its total product cost is $20 to per unit. b. Raw moteriais invemory consists solely of direct thatenals that cost $20 per pound. Company policy calls for a given month's ending matirials inventary to eqvial 50 \& of the next month's direct maierials requirements. The March 31 raw materials inventory is 4,210 pounds. The budgeted June 30 ending raw materlats inventory is 5,600 pounds. Each finished unit requires 0.50 pound of direct materisis: c. Company policy cails for a given monthis ending finshed goods inventory to equal gow of the next monthis budgeted unit sales. The March 31 finished goods inwentory is 16,800 units. d. Each finished unt requires o.so hour of direct labor at a fate of 512 per hour. e. The predetermined variable overhead rate is $430 per direct labor hout. Depreciation of $37960 per month is the only fleed factory overheadisem. 4. Sales commisions of 7 of sales are paid in the month of the sales. The saies managers monthly salary is $4,600. 0. Monthly general and adminiserabwe dxpenses include $28.000 for administrative salaries and 0.5% monthly interest on the long: h. The company bidgets 30s of sales to be for cash and the remaining 70k on crede. Credit sales are collehted in full in the month following the sale (no credi sales are collocted in the month of sale) L. Ail raw materiols purchoses are on credit and occounts payable are solely tied to raw materials purchases. Raw materials W The manimum ending cash balance far all months ins pold in the month of purchasel reach the minimum Loans require an interest poyment of $56,000. If necessary, the company borrows enough cash using a loan to gretiminary cash baiance exceeds the minimum, the ercess of each month-end (before any repayment) if the monthend k. Dividend of $26,000 are budgeted to be dectared and pa will be used to repay any loans. 1. No cash porments for income taxps are budgeted in the paid in May. quarter and budgeted to be paid in the third ealender quectend calendar quatter Income tax will be assessed ot 35% in the m. Eouiament ourchoses of 5100,000 are budgeted for the last dav of June