Show Attempt History Current Attempt in Progress 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 112,000 103,000 Expected unit sales for January 2020 114.000 Expected unit sales for February 2020 113,000 Expected unit sales for March 2020 116,000 Expected unit sales for April 2020 124,000 Expected unit sales for May 2020 138,000 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, 2019, 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, 2019, totaled 11,390 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 $104.590. 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 500 per labor hour Utilities 50 per labor hour Maintenance 300 per labor hour Salaries $43,000 per month Depreciation $16.600 per month Property taxes $2,700 per month Insurance $1,300 per month Maintenance $1,200 per month Selling and Administrative Variable selling and administrative cost per unit is $1.50