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.Waterways gathered the following information from the managers.

Sales
Unit sales for November 2021		113,000
Unit sales for December 2021		101,000
Expected unit sales for January 2022		112,000
Expected unit sales for February 2022		114,000
Expected unit sales for March 2022		116,000
Expected unit sales for April 2022		126,000
Expected unit sales for May 2022		139,000
Unit selling price		$12

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, 2021, totaled $181,800. Direct Materials Direct materials cost80per 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. 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 $102,605. Raw Materials on December 31, 2021, totaled11,220pounds.

Direct Labor

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

Manufacturing Overhead
Indirect materials		30		per labor hour
Indirect labor		50		per labor hour
Utilities		50		per labor hour
Maintenance		30		per labor hour
Salaries		$42,000		per month
Depreciation		$17,500		per month
Property taxes		$2,800		per month
Insurance		$1,400		per month
Maintenance		$1,500		per month

Selling and Administrative
Variable selling and administrative cost per unit is $1.50.
Advertising		$14,000	a month
Insurance		$1,400	a month
Salaries		$71,000	a month
Depreciation		$2,600	a month
Other fixed costs		$2,900	a month

Other Information The Cash balance on December 31, 2021, totaled $99,000, but management has decided it would like to maintain a cash balance of at least $700,000beginning on January 31, 2022. Dividends are paid each month at the rate of $2.50per share for5,040shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in $1,000increments at9% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $530,000equipment purchase is planned for February.

(a)

For the first quarter of 2022, arrange a sales budget.

WATERWAYS CORPORATION Sales Budget choose the accounting period For the Month Ending March 2022 March 2022 For the First Quarter of 2022
First Quarter
		January		February		March		Quarter
select a sales budget item Direct Labor Direct Materials Expected Unit Sales Production Units Total Sales Unit Selling Price		enter a number of units		enter a number of units		enter a number of units		enter a number of units
select a sales budget item Direct Labor Direct Materials Expected Unit Sales Production Units Total Sales Unit Selling Price		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select a closing sales budget item Direct Labor Direct Materials Expected Unit Sales Production Units Total Sales Unit Selling Price		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount

b. For the first quarter of 2022, prepare a Production budget.

c. For the first quarter of 2022, prepare the Direct material budget.

d. For the first quarter of 2022, prepare the Direct Labour budget.

e. For the first quarter of 2022, prepare the Manufacturing overhead budget.

f. For the first quarter of 2022, prepare the Selling and admin budget.

g. For the first quarter of 2022, prepare the Schedule of Expected collections from customers

h. For the first quarter of 2022, prepare the Schedule of Expected collections from customers

i. For the first quarter of 2022, prepare the Schedule of Expected cash payments for purchases

j. For the first quarter of 2022, prepare the Cash budget