Waterways Corporation is preparing its budget for the coming year, $2022.$ 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.Weterway Cerporition is preparirgits budget for the coning year, $2022.$ The frst step is to plan fer the first cuarter of that comins

receivitieon Decenber $3$L$.202$L$.$ toteled $$181.0\mathrm{.}0.$

Dizert Matedils

Direct Laber

Leber recuires $12$ minetes per vait for completion and hald at a rate of $$9$ per hour.

Selling and Adnhistrutive

Other informatian

Seso,$000$ toulonert surchane is planned lor February.

WATERWAYS CORPORATION

Sales Budget

First Quarter

Sales

Unit sales for November $2021$

$114\mathrm{.}000$

Unit sales for December $2021$

$101000$

Expected unit sales for January $2022$

$114\mathrm{.}000$

Expected unit sales for February $2022$ Expected unit sales for March $2022$

$114\mathrm{.}000$

$116\mathrm{.}000$

Expected unit sales for April $2022$

$124\mathrm{.}000$

Expected unit sales for May $2022$

$137\mathrm{.}000$

$512$

Unit selling price

Waterways likes to keep $100\%$ 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 $31,2021,$ totaled $$181,800$

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 $31,2021$ totaled $11,400$ 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 $31,2021,$ totaled $$120\mathrm{.}595.$

Direct Labor

Labor requires $12$ minutes per unit for completion and is paid at a rate of $$9$ per hour.

Manufacturing Overhead

Indirect materials

$30$

per labor hour

Indirect labor

$50$c

per labor hour

Utilities

$50\%$

per labor hour

Maintenance

$30\%$

per labor hour

Salaries

$$43\mathrm{.}000$

per month

Depreciation

$$15\mathrm{.}600$

per month

Property taxes

$$2\mathrm{.}500$

per month

Insurance

$$1,200$

per month

Maintenance

$$1,400$

per month

Selling and Administrative

Variable selling and administrative cost per unit is $$1\mathrm{.}70.$

Advertising

Insurance

Salaries

Depreciation

Other fixed costs

Other Information

$$13,000$ a month

$$1\mathrm{.}300$ a month

$$72\mathrm{.}000$ a month

$$2,200$ a month

$$2\mathrm{.}900$ a month

The Cash balance on December $31,2021,$ totaled $$101,000,$ but management has decided it would like to maintain a cash balance of at least $$800,000$ beginning on January $31,2022.$ Dividends are paid each month at the rate of $$2\mathrm{.}50$ per share for $5,050$ shares outstanding The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in $$1,000$ increments at $9\%$ interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $$460,000$ equipment purchase is planned for February

For the first quarter of $2022,$ prepare a direct labor budget. $($Round time per unit to nearest hour, eg$.30$ minutes will be rounded to $0\mathrm{.}5$ hours$)$

Units to be Produced

Total Materials Required

Total Direct Labor Cost

Beginning Materials Inventory

Direct Labor Cost Per Hour

Total Required Direct Labor Hours

Direct Materials Purchases

WATERWAYS CORPORATION

Direct Labor Budget

First Quarter

January

February

March

$

Direct Labor Time $($Hours$)$ Por Unit

Desired Ending Inventory

Cost Per Pound

Direct Materials Per Unit

Total Cost of Direct Materials Purchases

Total Pounds Required for Production

Attempts of $3$ used Submit Anwer

January

WATERWAYS CORPORATION

Sales Budget

For the First Quarter of $2022$

First Quarter

February

$114000$

$12$

$

$12$

$

Expected Unit Sales

$114000$

Unit Selling Price

$

Total Sales

$

$1368000$

WATERWAYS CORPORATION Production Budget

For the First Quarter of $2022$

$1368000$

March

$116000$

$12$

$1392000$

Firs

January

February

March

Quarter

$114000$

$11400$

$116000$

$1160$

$12400$

Expected Unit Sales

Add V

Desired Ending Finished Goods Unit

$11400$

Total Required Units

$125400$

$12560$

Less V

Beginning Finished Goods Unit

$11400$ i

$11400$

Required Production Units

$114000$

WATERWAYS CORPORATION Direct Materials Budget For the First Quarter of $2022$

$128400$

$11600$

$11420$

$116800$

$345000$

First arter

January

February

March

$114,000$

$114,200$

Units to be produced

$116800$

Direct Materials Per Unit

$2$

$2$

$2$

Total Pounds Required for Production

$228000$

$228400$

$233600$

Add

Desired Ending Inventory

$11420$

$11680$

$12530$

Total Materials Required

$239420$

$240000$

$246130$

Less

Beginning Materials Inventory

$11400$

$11420$ i

$11680$ i

$234450$

Direct Materials Purchases

$228020$

$228660$

$

$0\mathrm{.}80$

Cost Per Pound

$

$0\mathrm{.}80$

$

$0\mathrm{.}80$

Total Cost of Direct Materials Purchases

$

$182416$

$

$182928$

Quarter

Quarter

$187540$

$552904$

$344000$

$12$

$4128000$