$\backslash$table$[[\backslash$table$[[$ZIGBY MANUFACTURING$],[$Balance Sheet$],[$Harch $31]]],[$Assets$,$Liabilities and Equity$],[$Cash$,,$$ $72,80,$Liabilities,,$],[$Accounts receivable,,$619,920,$Accounts payable,$5.361,898,],[$Ran materials inventory,,$177,308,$Ioan payable,$12,000,],[$Finished goods inventory,,$585,972,$Long$-$term note payable,$900,000,$$ $1,273,809],[$Equiprent$,$$ $1,889,000,,$Equity,,$],[$Less: Accumulated depreciation,$278,490,818,0$e$0,$Common stock,$693,696,],[,,,$Retained earnings,$388,392,991,392],[$lotal assets,,$ $2,265,192,$Tatal liabilities and equity,,$ $2,265,192]]$

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

a$.$ Sales for March total $36,900$ units. Budgeted sales in units follow: April, $36,900$; May, $35,100$: June, $36,000$; and July, $36,900.$ 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 $8,865$ pounds. The budgeted June $30$ ending raw materials inventory is $7,200$ 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 $29,520$ units

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

e$.$ The predetermined variable overhead rate is $$2\mathrm{.}70$ per direct labor hour. Depreciation of $$36\mathrm{.}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 $$5,400.$

$9.$ Monthly general and administrative expenses include $$21,600$ for administrative salaries and $0\mathrm{.}9\%$ monthly interest on the longterm 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 materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month $($none are paid in the month of purchase$).$

j$.$ The minimum ending cash balance for all months is $$72,000.$ 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 $$18,000$ 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$.$ Equipment purchases of $$180,000$ are budgeted for the last day of June.

$\backslash$table$[[$ZIGBY MANUFACTURING$],[$Production Budget$],[,$April,May,June,Total$],[$Budgeted sales units,$885,600,840,000,864,000,],[,,,,],[$Next period budgeted sales units,$35,100,36,000,36,900,],[$Ratio of inventory to future sales,$80\%,80\%,80\%,],[$Desired ending inventory units,,,,$],[$Total required units,,,,$],[,,,,],[$Units to produce,,,,$]]$

$\backslash$table$[[$ZIGBY MANUFACTURING$],[$Direct Materials Budget$],[,$April,May,June,$],[$Units to produce,,,,$],[,,,,],[$Materials needed for production $($pounds$),,,,],[,,,,],[$Total materials required $($pounds$),,,,],[,,,,],[$Materials to purchase $($pounds$),,,,],[$Materials cost per pound,,,,$],[$Cost of direct materials purchases,,,,$]]$

$\backslash$table$[[$ZIGBY MANUFAC TURING$],[$Direct Labor Budget$],[,$April,May,June,Total$],[$Units to produce,,,,$],[,,,,],[$Direct labor hours needed,,,,$],[,,,,],[$Cost of direct labor,,,,$]]$