For the first quarter of 2022, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 2,520. List Variable Costs first.)

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. 111,000 103,000 114,000 Sales Unit sales for November 2021 Unit sales for December 2021 Expected unit sales for January 2022 Expected unit sales for February 2022 Expected unit sales for March 2022 Expected unit sales for April 2022 Expected unit sales for May 2022 112,000 116.000 124,000 137,000 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 $185,400. 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 11,380 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. Manufacturing Overhead Indirect materials 30C Indirect labor 500 Utilities 500 Maintenance 300 Salaries $41,000 Depreciation $17,800 Property taxes $2,800 per labor hour per labor hour per labor hour per labor hour per month per month per month per month Insurance $1,100 Maintenance $1,400 per month Selling and Administrative Variable selling and administrative cost per unit is $1.70. Advertising $16,000 a month Insurance $1,500 a month Salaries $71,000 a month Depreciation $2,700 a month Other fixed costs $3,200 a month Other Information The Cash balance on December 31, 2021, totaled $100,000, 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 $2.70 per share for 5.180 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 February January March Expected Unit Sales 114000 112000 116000 Unit Selling Price $ 12 $ 12 $ 12 Total Sales $ VA 1368000 $ 1344000 $ $ 1392000 e Textbook and Media Attempts: unlimited a (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 March Quarter 114000 112000 116000 342000 12 12 12 $ 12 W 07 1368000 1344000 $ 1392000 $ 4104000 e Textbook and Media Attempts: unlimited (b) Your answer is correct For the first quarter of 2022, prepare a production budget. WATERWAYS CORPORATION Production Budget For the First Quarter of 2022 First Quarte January February Expected Unit Sales 114000 112000 Add : Desired Ending Finished Goods Unit 11200 11600 Total Required Units 125200 123600 Less : Beginning Finished Goods Unit 11400 i 11200 Required Production Units 113800 112400 e Textbook and Media Attempts: unlimited (b) Your answer is correct. For the first quarter of 2022, prepare a production budget. WATERWAYS CORPORATION Production Budget For the First Quarter of 2022 First Quarter January February March Quarter 114000 112000 116000 11200 11600 12400 125200 123600 128400 11400 i 11200 i 11600 i 113800 112400 116800 343000 eTextbook and Media Attempts: unlimited (c) Your answer is correct. For the first quarter of 2022, prepare a direct materials budget. (Round cost per pound to 2 decimal places, eg. 0.25 and all other answers to decimal places, eg. 2,520.) WATERWAYS CORPORATION Direct Materials Budget For the First Quarter of 2022 First January February Units to be Produced 113800 112400 Direct Materials Per Unit 2 2 Total Pounds Required for Production 227,600 224,800 Add V: Desired Ending Inventory 11,240 11,680 Total Materials Required 238,840 236,480 Less Beginning Materials Inventory 11,380 11.240 Direct Materials Purchases 227,460 225.240 Cost Per Pound $ .80 $ .80 Total Cost of Direct Materials Purchases $ $ 181,968 $ 180,192 eTextbook and Media Attempts: unlimited (c) Your answer is correct For the first quarter of 2022, prepare a direct materials budget. (Round cost per pound to 2 decimal places, eg. 0.25 and all other answers to decimal places, eg. 2,520.) WATERWAYS CORPORATION Direct Materials Budget For the First Quarter of 2022 First Quarter January February March Quarter 113800 112400 116800 2 2 2 227,600 224,800 233.600 11.240 11,680 12.530 238,840 236,480 246,130 11.380 11,240 11,680 i 227.460 225.240 234.450 .80 $ .80 A .80 181.968 180,192 $ 187.560 $ 549720 e Textbook and Media Attempts: unlimited (d) 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 January February Ma Units to be produced 113,800 112.400 Direct Labor Time (Hours) Per Unit 20 20 Total Required Direct Labor Hours 22760 22480 Direct Labor Cost Per Hour 9 9 $ Total Direct Labor Cost $ 204,840 $ 202,320 $ e Textbook and Media Attempts: unlimited ) (d) 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 January February March Quarter 113,800 112,400 116,800 343000 20 20 20 20 22760 22480 23360 68600 $ 9 $ 9 9 $ 204,840 $ 202,320 $ $ 210,240 $ $ 617400 e Textbook and Media Attempts: unlimited WATERWAYS CORPORATION Manufacturing Overhead Budget For the First Quarter of 2022 First Quarter February January Variable costs Indirect Labor $ $ $ Utilities Maintenance $ $ Fixed Costs Insurance Maintenance DILDO!!! ODIO bioddddd tod! UL Property Taxes Salaries Depreciation Total Fixed Costs $ Total Manufacturing Overhead WU Direct Labor Hours Predetermined overhead rate for the quarter WATERWAYS CORPORATION Manufacturing Overhead Budget For the First Quarter of 2022 First Quarter February January March Quarter $ $ $ $ O NAMA $ Allod!!! dll 1000 ddddita! TONI DODOMA $ $ $ $ $