Waterways Continuing Problem (This is a contineation of the Waterways Problem froes Chapsers 1 through 8. wCP9 Waterways Corporation is preparing ins badget for the coming yeat 2014. The firt step is to plan for the first quarter of that coming vear Waterways gathered the fol- lowing information from the managers Sales Unit sales for November 2013 Unit sales for December 2013 Espected unit sales fo January 2014 Expected unit sales for February 2014 Expected unit sales Sor March 2014 Expected unit sales for April 2014 Expected unit sales for May 2034 Unit selling price 112.500 102.100 113000 112.500 116.000 125.000 137.500 $12 Waterways likes to keep 10% of the next month's unit sales in ending iventory, All sales are cn accouns 85% of the Accounts Receivable are collected in the month of sale and 15% of the Accouns Recriable are cellected in the month after sale. Accounts receiv able on December 31, 2013, totaled $183,780 Direct Materials Inventory, Dec. 31 5,177.5 Ib 3,883.125 lbs 1.294.375 Ih Item Amount Used per Unit 1b@ 58e per lb 12 or e per oz 4 e Se per o Metal Plastic Rubber 10.355.0 Ibs 2 lbs per unit Metal plastic, and rubber sogether are 75e per pound per unit. Waterways likes to keep 5%e of the materials needed for the next moech in its ending invencory Payment for materias is made within 15 days. 50e is paid in the month of purchase, and 50% is paid in the monah after purchase. Accounts Payable on December 1, 2013, teealed $120.595 Raw Materiahs on December 31. 2013, totaled 11.295 pounds Direct Labor Labor requires 12 minutes per unit for completcn and is paid at a rate of $8 per hour Manufacturing Overhead Indirect materials Indirecs labor Utilities 30 per labor hour 50 per labor hour 45 per labor hour 25e per labor hour $42000 per month S16,800 per month $ 2.675 per month S1,200 per month s 1,300 per month Maintenance Salaries Depreciation Property tases Insurance Janitorial Selling and Admisistrative Variable selling and administrative cost per unit is 51.60 $15,000 a month S 1,400 a month $72,000 a moth $2.500 a month S 3,000 a month Advertising Insurance Salaries Depreciation Other fised costs Other Information The Cash balance on December 31, 2013, totaled $100.500, but management has decided it would like to maintain a cash halance of at kast $800,000 beginning on January 31, 2014. Dividends are paid each month at the rate of $2.50 per share for 5,000 shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreemens requires boowing to be in $1,000 increments at 8% interest. Waterwavs borrows on the first day of the month and repays on the last day of the month. A 5500.000 equipment purchase is planned for February Instructions For the first quarter of 2014, do the following. (a) Prepare a sales budget. tb) Prepare a production budget. (c) Prepare a direct materials budget. (Round to nearest dollar) (d) Prepare a direct labor budget. (For calculations, round to the nearest hour) te) Prepare a manufacturing overhead budget. (Round amounts to the nearest dollar) D Prepare a selling and administrative budget. (g) Prepare a schedule for expected cash collections from customers (h) Prepare a schedule for expected payments for materials purchases. (Round totals to nearest dollar Prepare a cash budget. Chapter 9 Waterways Continuing Problem Waterway Corporation Sales Budget For the First Quarter of 20x First Quarter Quarter Formula February Value March January Value Value Expected unit sales Title Cell Reference Cell Reference Cell Reference Value Formula Formula Formula Title Formula Waterway Corporation Production Budget For the First Quarter of 20xo First Quarter Quarter March January Cell Reference February Cell Reference Cell Reference Formula Title Cell Reference Value Value Value Title Formula Formula Formula Formula Formula Total required units Title Cell Reference Cell Reference Cell Reference Formula Formula Formula Formula Title Waterway Corporation Direct Materials Budget For the First Quarter of 20x First Quarter Quarter March February Cell Reference January Cell Reference Cell Reference Formula Units to be produced Value Value Value Value Formula Ttle Formula Formula Formula Total pounds needed for production Cell Reference Value Value Value Title Formula Formula Formula Cell Reference Formula Total materials required Cell Reference Cell Reference Value Title Formula Formula Formula Formula Title Value Value Values Value Title Formula Formula Formula Formula Total Cost of direct materials purchases Waterway Corporation Direct Labor Budget For the First Quarter of 20xx First Quarter March Cell Reference Quar February Cell Reference January Cell Reference Formula Title Value Value Value Value Title Formula Formula Formula Formula Total required direct labor-hours Value Value Value Value Waterway Corporation Direct Labor Budget For the First Quarter of 20x First Quarter Quarter Formula Value March Cell Reference February Cell Reference January Cell Reference Title Title Value Value Formula Value Value Total required direct labor-hours Formula Formula Formula Value Value Title Value Formula Formula Formula Total direct labor costs Formula Waterway Corporation Manufacturing Overhead Budget For the First Quarter of 20xx First Quarter Quarter March February January Variable Costs Formula Formula Formula Formula Title Formula Formula Formula Formula Title Formula Formula Formula Formula Title Formula Formula Formula Formula Formula Title Formula Formula Formula Title Fixed Costs Cell Reference Cell Reference Cell Reference Formula Cell Reference Value Title Formula Cell Reference Cell Reference Value Title Formula Value Title Formula Cell Reference Cell Reference Value Title Formula Cell Reference Cell Reference Value Title Formula Formula Formula Formula Fixed manufacturing overhead Formula Formula Formula Formula Title Cell Reference Cell Reference Cell Reference Cell Reference Total manufacturing overhead Cell Reference Cell Reference Formula Cell Reference Direct labor hours Predetermined overhead rate for the quarter Formula Waterway Corporation Selling and Administrative Expense Budget For the First Quarter of 20xx First Quarter March Cell Reference Quarter Formula February Cell Reference Cell Reference January Cell Reference Budget sales in units Cell Reference Cell Reference Value Title Formula Formula Formula Formula Title Fixed expenses: Cell Reference Cell Reference Cell Reference Formula Value Title Cell Reference Formula Value Title Cell Reference Formula Cell Reference Value Title Cell Reference Cell Reference Formula Value Title Cell Reference Value Cell Reference Formula Title Formula Formula Formula Formula Title Total S&A expenses Formula Formula Formula Formula Schedule of Expected Collections from Customers January March February Accounts Receivable, 12/31/13 Value Title Formula Formula Formula Title Formula Formula Title Formula Total cash collections Formula Formula Schedule of Expected Payment for Direct Materials February Quarter Formula March January Value Accounts Payable, 12/31/13 Formula Formula Title Formula Formula Formula Formula Title Formula Formula Title Formula Formula Formula Formula Total payments Waterway Corporation Cash Budget For the First Quarter of 20xx First Quarter Quarter March February Cell Reference January Cell Reference Cell Reference Beginning cash balance Add: Receipts Value Formula Cell Reference Cell Reference Cell Reference Title Formula Formula Formula Formula Total available cash Less: Disbursements Formula Formula Formula Formula Title Formula Cell Reference Cell Reference Cell Reference Title Formula Formula Formula Formula Title Formula Formula Formula Formula Title Formula Value Equipment Purchase Formula Cell Reference Cell Reference Value Title Formula Formula Formula Formula Total disbursements Excess (deficiency) of available cash over cash disbursements Formula Formula Formula Formula Financing: Title Formula Value Formula Cell Reference Title Formula Formula Interest Formula Formula Formula Formula Ending cash balance