Problem $20-4$A $($Algo$)$ Manufacturing: Preparation of a complete master budget LO P$1,$ P$2,$ P$3$

The management of Zigby Manufacturing prepared the following balance sheet for March $31.$

o 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 $$24\mathrm{.}00$ per unit and its total product cost is $$19\mathrm{.}85$ per unit.

b$.$ 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 $22,655$ pounds. The budgeted June $30$ ending raw materials inventory is $18,400$ pounds. Each finished unit requires $0\mathrm{.}50$

Prey

$1$ of $1$

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