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 $31.$

To prepare a master budget for April, May, and June, management gathers the following information.

a$.$ Sales for March total $45,100$ units. Budgeted sales in units follow: April, $45,100$; May, $42,900$; June, $44,000$; and July, $45,100.$ 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 $10,835$ pounds. The budgeted June $30$ ending raw materials inventory is $8,800$ pounds. Each finished unit requires $0\mathrm{.}50$

pound of direct materials.

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

The March $31$ finished goods inventory is $36,080$ units.