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. Sales 114,000 101.000 112.000 113,000 Unit sales for November 2021 Unit sales for December 2021 Expected unit sales for January 2022 Expected unit sales for February 2022 Expected unit sales for March 2022 Expected unit sales for April 2022 Expected unit sales for May 2022 Unit selling price 117.000 126,000 138.000 $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 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 11.210 pounds. Payment for materials is made withi 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 $120,595. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Manufacturing Overhead 300 per labor hour Indirect materials Indirect labor 500 per labor hour Utilities 400 per labor hour Maintenance 304 per labor hour Salaries $41,000 per month Depreciation $16,400 per month $2,800 Property taxes per month cho Insurance $1,200 per month Maintenance $1,200 per month Selling and Administrative Variable selling and administrative cost per unit is $1.70. Advertising $14,000 a month Insurance $1,300 a month Salaries $73.000 a month Depreciation $2,800 a month Other fixed costs $2,800 a month Other Information The Cash balance on December 31, 2021. totaled $102,000, but management has decided it would like to maintain a cash balance of at least $700,000 beginning on January 31, 2022. Dividends are paid each month at the rate of $2.30 per share for 5.140 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 $550,000 equipment purchase is planned for February (a)For the first quarter of 2022, prepare a sales budget (b) For the first quarter of 2022, prepare a production budget. (c) For the first quarter of 2022, prepare a direst materials budget (d) For the first quarter of 2022, prepare a direct labor budget (e) For the first quarter of 2022, prepare a manufacturing overhead budget. () For the first quarter of 2022, prepare a selling and administrative budget (g) for the first quarter of 2022, prepare a schedule for expected cash collections from customers (h) for the first quarter of 2022, prepare a schedule for expected payments for materials purchase. For the first quarter of 2022, prepare a cash budget