Waterways Continuing Problem 24 a-i (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 112,000 103,000 112,000 111,000 117,000 125,000 138,000 $12 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 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 Heterialsnter 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 11,190 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 $104,300 Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $6 per hour. Manufacturing Overheacd Indirect materials 30 per labor hour 50 per labor hour 404 per labor hour 20 per labor hour Indirect labor Utilities Maintenance Salaries $41,000 per month $16,600 per month $2,500 per month $1,100 per month $1,200 per month Depreciation Property taxes Insurance Maintenance Selling and Administrative Variable selling and administrative cost per unit is $1.60 Advertising $14,000 a month $1,200 a month $74,000 a month $2,600 a month $3,000 a month Insurance Salaries Depreciation Other fixed costs Other Information The Cash balance on December 31, 2019, totaled $102,000, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2.70 per share for 4,690 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 6% interest, waterways borrows on the first day of the month and repays on the last day of the month. A $450,000 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 2020 First Quarter March February Quarter January Expected Unit Sales 112000 111000 117000 340000 12 12 12 12 Unit Selling Pricev 1344000 1332000 1404000 4080000 Total Sales Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 2 of 2 used (b) For the first quarter of 2020, prepare a production budget. WATERWAYS CORPORATION Production Budget First Quarter March February January Quarter Add Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXTLINK TO TEXT Attempts: 0 of 2 used