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

a$.$ Sales for March total $102,500$ units. Budgeted sales in units follow: April, $102,500$; May, $97,500$; June, $100,000$; and July, $102,500.$ The product's selling price is $$24\mathrm{.}00$ per unit and its total product cost is $$19\mathrm{.}85$ per unit.

b$.$ Raw 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 $24,625$ pounds. The budgeted June $30$ ending raw materials inventory is $20,000$ 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 $82,000$ units. $L$

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 $$2\mathrm{.}70$ per direct labor hour. Depreciation of $$100,000$ 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 $$15,000.$

g$.$ Monthly general and administrative expenses include $$60,000$ for administrative salaries and $0\mathrm{.}9\%$ monthly interest on the long$-$term note payable.

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