0.44/1 Waterways Corporation is preparing its budget for the coming year, 2022. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2021 114,000 Unit sales for December 2021 101,000 Expected unit sales for January 2022 112,000 Expected unit sales for February 2022 113,000 Expected unit sales for March 2022 117,000 Expected unit sales for April 2022 126,000 Expected unit sales for May 2022 138,000 Unit selling price $12 Waterways likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2021, totaled $181,800. Direct Materials Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit. Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2021 totaled 11,210 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2021, totaled $120,595. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Manufacturing Overhead Indirect materials per labor hour Indirect labor per labor hour Utilities per labor hour Maintenance per labor hour Salaries per month Depreciation per month Property taxes per month Insurance per month Maintenance per month Selling and Administrative Variable selling and administrative cost per unit is $1.70. Advertising $14,000 a month Insurance $1.300 a month Salaries $73,000 a month Depreciation $2.800 a month **** !!!!! $41,000 $16,400 $2,800 $1.200 $1.200 The Cash balance on December 31, 2021, totaled $102,000, but management has decided it would like to maintain a cash balance of at least $700,000 beginning on January 31, 2022. Dividends are paid each month at the rate of $2.30 per share for 5,140 shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 9% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $550,000 equipment purchase is planned for February. (a) Your answer is correct. For the first quarter of 2022, prepare a sales budget. WATERWAYS CORPORATION Sales Budget For the First Quarter of 2022 First Quarter January February Expected Unit Sales V Unit Selling Price Total Sales eTextbook and Media, S 112000 12 1344000 $ 113000 12 1356000 $ $ March 117000 12 1404000 Your answer is correct. For the first quarter of 2022, prepare a production budget. Expected Unit Sales Add V: Desired Ending Finished Goods Unit v Total Required Units y Less Beginning Finished Goods Unit Required Production Units eTextbook and Media January WATERWAYS CORPORATION Production Budget For the First Quarter of 2022 112000 11300 123300 11200 112100 February First Quarter 113000 11700 124700 11300 i 113400 Attempts: unlimited Units to be Produced Direct Materials Per Unit Total Pounds Required for Production Add VI Desired Ending loventory Total Materials Required. M Less MB Beginning Materials Inventory. Direct Materials Purchases Cost Per Pound Total Cost of Direct Materials Purchases e Textbook and Media v S LA WATERWAYS CORPORATION Direct Materials Budget For the First Quarter of 2022 112100 2 224200 11340 235540 11210 i 224330 8 179464 January 201 February ! 11340 First Qu 113400 2 226800 11790 238590 227250 8 181800 Attempts: unlimited Your answer is correct. For the first quarter of 2022, prepare a direct labor budget. (Round time per unit to nearest hour, e.g. 30 minutes will be rounded to 0.5 hours) WATERWAYS CORPORATION Direct Labor Budget For the First Quarter of 2022 First Quarter Units to be Produced Direct Labor Time (Hours) Per Unit Total Required Direct Labor Hours Direct Labor Cost Per Hour Total Direct Labor Cost eTextbook and Media $ $ January 112100 2 22420 201780 i 0 February 113400 2 22680 9 204120 S $ Mar TOLL For the first quarter of 2022, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, eg 5.25 and all other answers to 0 decimal places, e.g. 2,520. List Variable Costs first.) WATERWAYS CORPORATION Manufacturing Overhead Budget First Quarter February $ > > > > $ $ SA 2 37 January $ O 11 Monkey Quest Nicutube Education a S Question 1 of 1 S ][[ 0.44/1 1000000 ** 1111b0000 floor! 0 1 of 1 K 0.44/1 E I rst quarter of 2022.prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, eg. 5.25 and all avers to O decimal places, eg. 2,520. List Vorlable Costs first) WATERWAYS CORPORATION Manufacturing Overhead Budget First Quarter February March Quarter January $ $ $ 48F Cloudy 0 107 AM