ACCT 2320-Case Assignment APPENDIX A Waterwaye Continuing Problem (adapted from WCP-10, page 446) recently acquired a small manufacturing operation in British This plant will provide these units Waterways Corporation has Columbia that produces one of its more popular items for resale in retail hardware s budget prepared by the plant was Leigh, W tores across British Columbia and Alberta. Because the to oversee the plaincomplete, Jordan Leigh, Waterways CFO, was sent to collect the following information for preparing the oeting process for the second quarter of 2018. Jordan asked the various managers second-quarter budget. Sales Unit sales for February 2018 Unit sales for March 2018 162,000 183,600 198,000 207,000 216,000 243,000 288,000 Expected unit sales for April 2018 Expected unit sales for May 2018 Expected unit sales for June 2018 Expected unit sales for July 2018 Expected unit sales for August 2018 Average unit selling price $18.00 Based on the experience from the home plant, Jordan has suggested that the B.C. plant eep8% be next month's unit sales in ending inventory. The plant has contracts with some of the major home hardware giants, so all sales are on account; 60% of the accounts receivable is collected in the month of sale, and the balance is collected in the month after sale. This was the same collection pattern from the previous year. The new plant has no bad debts. Direct materials The combined quantity of direct materials (consisting of metal, plastic and rubber) used in each unit is 1.5 kg. Metal, plastic, and rubber together amount to $3.60 per kg. Inventory of combined direct material on March 31 consisted of 30,489 kg. The plant likes to keep 10% of the materials needed for the next month's production in its ending inventory. Forty percent of the payables is paid in the month of purchase, and 60% is paid in the month after purchase. Accounts payable on March 31 will total $620,590. Direct labour Labour requires 18 minutes per unit for completion and is paid at an average rate of $24 per hour 41 Page ACCT 2320-Case Assignment APPENDIX A Waterwaye Continuing Problem (adapted from WCP-10, page 446) recently acquired a small manufacturing operation in British This plant will provide these units Waterways Corporation has Columbia that produces one of its more popular items for resale in retail hardware s budget prepared by the plant was Leigh, W tores across British Columbia and Alberta. Because the to oversee the plaincomplete, Jordan Leigh, Waterways CFO, was sent to collect the following information for preparing the oeting process for the second quarter of 2018. Jordan asked the various managers second-quarter budget. Sales Unit sales for February 2018 Unit sales for March 2018 162,000 183,600 198,000 207,000 216,000 243,000 288,000 Expected unit sales for April 2018 Expected unit sales for May 2018 Expected unit sales for June 2018 Expected unit sales for July 2018 Expected unit sales for August 2018 Average unit selling price $18.00 Based on the experience from the home plant, Jordan has suggested that the B.C. plant eep8% be next month's unit sales in ending inventory. The plant has contracts with some of the major home hardware giants, so all sales are on account; 60% of the accounts receivable is collected in the month of sale, and the balance is collected in the month after sale. This was the same collection pattern from the previous year. The new plant has no bad debts. Direct materials The combined quantity of direct materials (consisting of metal, plastic and rubber) used in each unit is 1.5 kg. Metal, plastic, and rubber together amount to $3.60 per kg. Inventory of combined direct material on March 31 consisted of 30,489 kg. The plant likes to keep 10% of the materials needed for the next month's production in its ending inventory. Forty percent of the payables is paid in the month of purchase, and 60% is paid in the month after purchase. Accounts payable on March 31 will total $620,590. Direct labour Labour requires 18 minutes per unit for completion and is paid at an average rate of $24 per hour 41 Page