Waterways Corporation has recently acquired a small manufacturing operation in British Columbia that produces one of its more popular items. This plant will provide these units for resale in retail hardware stores in British Columbia and Alberta. Because the budget prepared by the plant was incomplete, Jordan Leigh, Waterways' CFO, was sent to B.C. to oversee the plant's budgeting process for the second quarter of 2021. Jordan asked the various managers to collect the following information for preparing the second-quarter budget. Sales Unit sales for February 2021 Unit sales for March 2021 Expected unit sales for April 2021 Expected unit sales for May 2021 Expected unit sales for June 2021 Expected unit sales for July 2021 Expected unit sales for August 2021 Average unit selling price $100,000 112,000 120,000 125,000 130,000 145,000 170,000 $13 Based on the experience in the home plant, Jordan has suggested that the B.C. plant keep 10% of the next month's unit sales in ending inventory. The plant has contracts with some of the major home hardware giants, so all sales are on account; 50% of the accounts receivable is collected in the month of sale, and the balance is collected in the month after sale. This was the same collection pattern as the previous year. The new plant has no bad debts. Direct Materials The combined quantity of direct materials (consisting of metal, plastic, and rubber) used in each unit is 1.20 kg. Metal, plastic, and rubber together amount to $1.50 per kg. Inventory of combined direct materials on March 31 consisted of 14,460 kg. This plant likes to keep 10% of the materials needed for the next month in its ending inventory. Fifty percent of the payables is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts payable on March 31 will total $129,000. Direct Labour Labour requires 15 minutes per unit for completion and is paid at an average rate of $12 per hour. Manufacturing Overhead Indirect materials $0.70 Indirect labour $0.50 Utilities $0.40 Maintenance $0.30 Salaries $44,400 Depreciation $14,000 Property taxes $2,150 Insurance $1,000 Janitorial $2,600 per labour hour per labour hour per labour hour per labour hour per month per month per month per month per month Selling and Administrative Variable selling and administrative expenses per unit are $1.50. Advertising $14,000 a month Depreciation $2,400 a month Insurance $1,100 a month Other fixed costs $3,400 a month Salaries $77,000 a month Other Information The cash balance on March 31 will be $111,000, but Waterways has decided it would like to maintain a cash balance of at least $600,000 beginning on April 30. The company has an open line of credit with its bank. The terms of the agreement require borrowing to be in $1,000 increments at 3% interest. Borrowing is considered to be on the first day of the month and repayments and interest payments are on the last day of the month. In May, $660,000 of new equipment to update operations will be purchased. Three months' insurance is prepaid on the first day of the first month of the quarter. For the second quarter of 2021, prepare a selling and administrative expenses budget. (Enter per unit expenses rounded to 2 decimal places, e.g. 1.25.) WATERWAYS CORPORATION British Columbia Production Plant Selling and Administrative Budget for the 2nd Quarter, 2021 April May June Total Expected Sales in Units + 120000 125000 130000 375000 Variable Cost Per Unit + 1.5 1.5 1.5 1.5 $ $ $ Total Variable Selling and Administrative Expenses + 180000 187500 195000 562500 Add : Fixed Selling and Administrative Expenses + 97900 97900 97900 293700 Total Selling and Administrative Expenses + 277900 285400 292900 856200 Less: Non-Cash Expenditures Cash Expenditures for Selling and Administrative Expenses LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT For the second quarter of 2021, prepare a cash budget. (Round answers to o decimal places, e.g. 2,575.) WATERWAYS CORPORATION British Columbia Production Plant Cash Budget for the 2nd Quarter, 2021 April May June Total Beginning Cash Balance Add Cash Receipts Cash Collections Total Available Cash Less : Cash Expenditures + Direct Materials Direct Labour Manufacturing Overhead Selling and Administrative Equipment Purchase + Prepaid Insurance Total Expenditures + Excess of Available Cash Over Cash Disbursements Financing Borrowings Repayments > Repayments Interest Total Financing Ending Cash Balance