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part h. for the first quarter of 2022 prepare a schedule for expected payments for materials purchases Current Attempt in Progress Waterways Corporation is preparing
part h. for the first quarter of 2022 prepare a schedule for expected payments for materials purchases
Current Attempt in Progress 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 113,000 Unit sales for December 2021 103,000 112,000 112,000 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 116.000 127.000 137.000 $12 Unit selling price 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 sales Accounts receivable on December 31, 2021, totaled $185,400. Direct. Materials Direct materials costo 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. Haw Materials on December 31, 2021 totaled 11,200 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase and 50% la 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 Other Information The Cash balance on December 31, 2021, totaled $100,000, but management has decided it would like to maintain a balance of at least $700,000 beginning on January 31, 2022. Dividends are paid each month at the rate of 52 30 per share for 5.170 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 996 interest. Waterways borrows on the first day of the month and repays on the last day of the month 5490,000 equipment purchase is planned for February, For the first quarter of 2022 prepare a schedule for expected payments for materials purchases. Round answers to decimal places, eg 2.520.) Schedule of Expected Cash Payments for Purchases January February March Accounts payable, 12/31/19 $ 120595 January February March Total payments
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