Waterway Furniture builds high-end hand-made dining tables. Attacus Simmons, the companys owner, has developed the following sales forecast for 2018.
Because of the time needed to create each table, Waterway maintains an ending Finished Goods Inventory of 20% of the following quarters budgeted sales. Waterway has been following this inventory policy for several years. The company ended 2017 with 509 tables on hand. The standard cost card for a table is as follows:
Because of the time needed to create each table, Waterway maintains an ending Finished Goods Inventory of 20% of the following quarters budgeted sales. Waterway has been following this inventory policy for several years. The company ended 2017 with 509 tables on hand. The standard cost card for a table is as follows: 
Prepare Waterway's production budget for 2018. Assume that the desired ending inventory for 2018 is 560 tables. (Round answers to 0 decimal places, e.g. 5,275.) Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2800 2926 2312 Annual Budgeted unit sales 2544 10582 Budgeted ending inventory v 560 585 462 560 2167 Total units required 3104 3385 3388 2872 12749 Beginning inventory lg inventory (509) Budgeted Production Waterway maintains inventory of American cherry wood equal to 10% of the following quarter's production needs. On December 31, 2017, Waterway's physical inventory count showed 5,600 board feet of American cherry. Due to an anticipated price increase in 2019, managers want to have 10,032 board feet of American cherry wood in inventory on December 31, 2018. Prepare Waterway's 2018 direct materials purchases budget for American cherry wood. (Round answers to o decimal places, e.g. 5,275.) Direct Materials Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Prepare Waterway's direct labor budget for 2018. (Round answers to 0 decimal places, e.g. 5,275.) Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Assume that because of the skill level required to make the tables, Waterway cannot easily hire additional workers to handle peaks in demand. Consequently, the company maintain a steady workforce of 60 employees and guarantees each worker 500 hours per quarter. For any additional time required to complete the scheduled production, these same workers earn 1.5 times their normal hourly rate. Prepare Waterway's direct labor budget for 2018. (Round overtime rate to 1 decimal place, e.g. 52.7 and all other answers to o decimal places, e.g. 5,275.) Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Question 1 Waterway Furniture builds high-end hand-made dining tables. Attacus Simmons, the company's owner, has developed the following sales forecast for 2018. 1st Quarter 2,544 2nd Quarter 2,800 3rd Quarter 4th Quarter 2,9262 ,312 Forecasted sales (tables) Because of the time needed to create each table, Waterway maintains an ending Finished Goods Inventory of 20% of the following quarter's budgeted sales. Waterway has been following this inventory policy for several years. The company ended 2017 with 509 tables on hand. The standard cost card for a table is as follows: Total Standard Cost $100 American cherry wood American cherry turning square (legs) Direct labor Variable overhead Fixed overhead Standard Quantity 25 board feet 4 squares 12 DLH 12 DLH 12 DLH Standard Price $4/board foot $10/square $16/DLH $51/DLH $9/DLH 192 612 108 $1,052 Prepare Waterway's production budget for 2018. Assume that the desired ending inventory for 2018 is 560 tables. (Round answers to 0 decimal places, e.g. 5,275.)
