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		112,000
Unit sales for December 2021		103,000
Expected unit sales for January 2022		114,000
Expected unit sales for February 2022		113,000
Expected unit sales for March 2022		116,000
Expected unit sales for April 2022		124,000
Expected unit sales for May 2022		138,000
Unit selling price		$12

Waterways likes to keep 10% of the next months 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 $185,400. Direct Materials Direct materials cost 80 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. 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 $104,590. Raw Materials on December 31, 2021, totaled 11,390 pounds.

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		per labor hour
Utilities		50		per labor hour
Maintenance		30		per labor hour
Salaries		$43,000		per month
Depreciation		$16,600		per month
Property taxes		$2,700		per month
Insurance		$1,300		per month
Maintenance		$1,200		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		$72,000	a month
Depreciation		$2,600	a month
Other fixed costs		$3,000	a month

Other Information The Cash balance on December 31, 2021, totaled $103,000, 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 $2.40 per share for 4,540 shares outstanding. The company has an open line of credit with Romneys 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 2020, prepare a sales budget. WATERWAYS CORPORATION Sales Budget First Quarter January February March Quarter For the first quarter of 2020, prepare a production budget. WATERWAYS CORPORATION Production Budget January First Quarter February March Quarter For the first quarter of 2020, prepare a direct labor budget. (Round time per unit to nearest hour, e.g. 30 minutes will be rounded to 0.5 hours) WATERWAYS CORPORATION Direct Labor Budget First Quarter January Quarter February March For the first quarter of 2020, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, ag. 2,520. List Variable Coste fire) WATERWAYS CORPORATION Manufacturing Overhead Budget First Quarter January March Quarter > > > > > > February For the first quarter of 2020, prepare a selling and administrative budget. (Enter per unit expenses rounded to 2 decimal places. E.g. 1.25) WATERWAYS CORPORATION Selling and Administrative Expense Budget First Quarter January February March Quarter For the first quarter of 2020, prepare a cash budget. (Round answers to 0 decimal places, e.g. 2,520.) WATERWAYS CORPORATION Cash Budget First Quarter > V * Click if you would like to Show Work for this question: Open Show Work