IE IN Waterways Continuing Problem 09 Anche Waterways Corporation is preparing student for the coming year, 2020. The first steps to plan for the first quarter of the coming year. The company has gathered information from man preparation of the budgeting process tinut sales for November 2019 112,000 Unitales for December 2019 103.000 Expected sales for January 2020 114.000 texpected unst sales for February 2020 113,000 Expected unit sales for March 2010 116,000 Expected unit les for April 2020 124.000 Expected and sales for May 2020 138,000 512 Waterways kes to keep 10% of the next month une sales in ending inventory Aeon un 5% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable we collected in the month for sale Accounts receivable on December 31, 2019, totaled $185.00 Direct Materials Direct materials cost 80 centier pound. The pounds of direct materials are required to produce dach unit. Waterways likes to keep of the materials needed for the next month in its ending wwentory law Materials on December 21, 2019, totaled 11,390 pounds. Payment for material is made within 15 days 50 ped in the month of purchase, and 50% od in the month after purchase. Accounts Payable on December 1, 2019, totaled $104,500 Direct Labor Labor requires 12 minutes per unit for completion and is pad at a rate of 59 per hour. Manufacturing Overhead Indirect material 304 per labor hour Indirect labor 50 per tabor hour coties 504 per labor hoor Mante 300 per labochou $13,000 per month Derator 516,600 per month Property $2,700 per month Direct Materials Dwect materials costo cents per pound. Two pounds of Grect materials are required to produce achat We des to keep of the materials needed for the next month in its ending wventory. Pure Material on December 31, 2019, totaled 11,390 pound. Payment for materials made within 15 dana som Dout in the month of purchase, and 50% paid in the month after purchase. Accounts Payable on December 31, 2010, totaled 5104,500. Direct Latorreurres 12 minutes per unit for completion and is rate of 59 per how Manufacturing Overhead Indect materials 304 per labor hour Indirect inter 504 pershor Us so per labot hour 300 per bor how 145.000 per Depreciation $10,000 per month rytas 32,700 per month $1,300 per Maintenance $1,200 per month Selling and Administrative Vanesing and distrative cost per 11.50 $14.000 a month Turance 51.400 a month Sines 572,000 m Depreciation $2,600 Other fe cost $3,000 Other informato The Chance on December 31, 2019 totaled $10,000, but management has decided it would like to maintain a cash balance of atteint $800,000 beginning on January 31, 2020, Dividends are said each muntthera of 9.40 per here for 40 hores standing. The company has an open line of credit with Romneys Bank. The terms of the agreement rews borrowing to be in 31.000 sements terest Waterways borrows on the first day of the month and repays on the last day of the month A $460.000 opent purchase is planned for February CALCULATOR FRIRIER VIS TAEK The Cash balance on December 1, 2019, located $103.000, but management has decided it would to maintain a cash balance of at least 100,000 beginning on May 31, 2020. Dividends repost nach month at the rate of 12.40 per share for 4,540 shares outstanding. The company has an openine of credit with one tank. The terms of the agreement requires borrowing to be in $1,000 increments interest. Waterways borrows on the first day of the month and replays on the last day of the month. A $400,000 quent purchase is planned for February For the test quarter of 2020, par les budget WATERWAYS CORPORATION Sales funt or the Month Ending March 2020 First Quarter February Expected tinet Sales 114000 113000 Unit Selling Price 12 12 $ March Carter 345000 116000 12 12 Total Sales 1356000 1302000 4116000 For the first quarter of 2020, prepare a production budget WATERWAYS CORPORATION Production Budget for the Month triang March 2020 First Quarter January February March Face Unit Sales 114000 113000 116000 Add Died Ending Fished Goods Unit 11.100 11600 12400 Quarter 125300 120000 1200 Total Red Begining Finished Gode unt 11.400 11300 For the first quarter of 2020, prepare a direct materials budget. (Round cost per pound to 2 decimal places, c.0.75 and all other an WATERWAYS CORPORATION Direct Materials Budget For the Month Ending March 2020 First Quarter January February March Quarter Units to be produced 113900 2 227800 Direct Materials Per Unit Total Pounds Required for Production Add . Desired Ending Inventory Total Materials Required Less Beginning Materials Inventory 113300 116800 125400 Direct Materials Purchases Cost Per Pound $ $ Total cost of Direct Materials Purchases $ S For the first quarter of 2020, prepare a direct labor budget. (Round time per unit to nearest hour, e.g. 30 minutes will be WATERWAYS CORPORATION Direct Labor Budget For the Month Ending March 2020 First Quarter January February March 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 5 $ $ $ For the first quarter of 2020, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, eg. 5.25 and all other answers to deci first.) WATERWAYS CORPORATION Manufacturing Overhead Budget For the Month Ending March 2020 First Quarter January February March Quarter Variable costs Indirect Materials Indirect Labor Utilities Maintenance > Total Variable Cost > $ Fixed Costs Salarie Depreciation > Property Taxes > Maintenance > Total Fixed costs Total Manufacturing Overhead 5 For the first quarter of 2020, prepare a selling and administrative budget. (Enter per unit expenses rounded to 2 decimal places. E. WATERWAYS CORPORATION Selling and Administrative Expense Budget For the Month Ending March 2020 First Quarter January February March Quarter Budget Sales In Units Variable Expenses Per Unit $ $ Total Variable S & A Expense $ $ Fixed Expenses Advertising $ $ $ $ Salaries v Depreciation Insurance > Other Total Fixed Expenses $ Total S&A Expenses $ $ For the first quarter of 2020, prepare a schedule for expected cash collections from customers. Schedule of Expected Collections from Customers January February March Quarter Accounts receivable, 12/31/19 January sales February sales March sales Total cash collections For the first quarter of 2020, prepare a schedule for expected payments for materials purchases. (Round answers to 0 decimal places Schedule of Expected Cash Payments for Purchases January February March Quarter Accounts payable, 12/31/19 $ January February March Total payments For the first quarter of 2020, prepare a cash budget. (Round answers to 0 decimal places, e.g. 2,520.) WATERWAYS CORPORATION Cash Budget First Quarter January February March Quarter Beginning Cash Balance Add Receipts