NETE Waterways Continuing Problem 09 (Part Level Submission) Waterways Corporation is preparing its budget for the coming year, 2020. 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 2019 Unit sales for December 2019 Expected unit sales for January 2020 Expected unit sales for February 2020 Expected unit sales for March 2020 Expected unit sales for April 2020 Expected unit sales for May 2020 Unit selling price 112,000 102,000 114,000 112,000 117,000 124,000 139,000 $12 the Accounts 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% Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $183,600 Direct Materials Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit. Waterways likes to keep of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2019, 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, 2019, totaled 5103,730 Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour Manufacturing Overhead Indirect materials 304 per labor hour Indirect labor 50+ per labor hour Utrities 404 per labor hour Maintenance 204 per labor hour Salaries $42.000 per month Depreciation $16,300 per month Property taxes $2.700 per month Insurance $1,300 per month MA RC Math CALCULATOR * RACK & Selling and Administrative Variable selling and administrative cost per$1.50 Advertising $15.000 a month Insurance $1,400 a month Salaries $70,000 a month Depreciation $2,200 a month Other fixed costs $2,800 a month Other Information The Cash balance on December 31, 2019, totaled 3103,000, but management has decided to me to maintain a cash bacance of at least 5800,000 beginning on January 31, 2020, Dividends are paid each month at the rate of $2.50 per share for 4,960 shares outstanding. The company has an online of credit with Romer'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 $10,000 equipment purchase is planned for February (a) Your answer is correct For the first quarter of 2020, prepare a sales budget WATERWAYS CORPORATION Sales Budget For the First Quarter of 1030 First Quarter January February March ected Unit Sale 1140001 Quarter 343000 112000 117000 ng Pro 12 12 12 Total Sales 1360000 1344000 1404000 4316000 Click if you would like to show Work for this questions Open Show Work TALO (b) Your answer is correct For the first quarter of 2020, prepare a production budget WATERWAYS CORPORATION Production Budget Format Quarter 2010 First Quarter January February March Breid Units 154000 112000 117000 Quarter Add Desired Ending Goods 31200 11700 12400 Total Required Units 125200 12.3700 129400 Beginning ished Goods et 1.400 11200 11700 117700 344000 Required Production Unit 13800 112500 Click if you would like to show Work for this questionow Work 193800 LINK TO TEXT LINK TO THE LINK TO TEXT (d) Your answer is correct CALCULATOR For the first quarter of 2020, 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 2020 First Quarter January February March Quarter Units to be produced 113800 112500 Direct Labor Time (hours) Per Unit 117700 344,000 Total Required Direct Labor Hours 22500 Direct Labor Cost Per Hour 227601 G 9 23540 65800 $ Total Direct Labor Cost 9 204840 202500 211860 Click if you would like to Show Work for this question: Open Show Work 619200 (0) For the first quarter of 2020, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, eg. 8.25 and other answers to decimal places... 2,520. Let Variable costs first.) WATERWAYS CORPORATION Manufacturing Overhead Budget For the First Quarter of 2020 First Quarter January February March Quarter