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.

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 103,000 Expected unit sales for January 2022 112,000 Expected unit sales for February 2022 112,000 Expected unit sales for March 2022 116,000 Expected unit sales for April 2022 127,000 Expected unit sales for May 2022 137,000 Unit selling price $12 Direct Materials Item Amount Used per Unit Inventory, Dec. 31 Metal 1 lb @ 58 per lb. 5,177.5 lbs Plastic 12 oz @ 64 per oz 3,883.125 lbs Rubber 4 oz @ 5 per oz 1,294.375 lbs 2 lbs per unit 10,355.0 lbs Metal, plastic, and rubber together are 804 per pound per 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 $104,305. Raw Materials on December 31, 2021, totaled 11,200 pounds. Metal, plastic, and rubber together are 80 per pound per 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 $104,305. Raw Materials on December 31, 2021, totaled 11,200 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 40 per labor hour Maintenance 20 per labor hour Salaries $42,000 per month Depreciation $16,200 per month Property taxes $2,900 per month Insurance $1,300 per month Maintenance $1,400 per month Selling and Administrative Variable selling and administrative cost per unit is $1.80. Advertising $17,000 a month Insurance $1,300 a month Salaries $72,000 a month Depreciation $2.800 a month Other fixed costs $2,900 a month Other Information The Cash balance on December 31, 2021, totaled $100,000, 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 5,170 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 $490,000 equipment purchase is planned for February. (a) For the first quarter of 2022, prepare a sales budget. WATERWAYS CORPORATION Sales Budget For the First Quarter of 2022 V First Quarter January February March Quarter $ $ $ $ $ $ $ $ e Textbook and Media Save for Later Attempts: 0 of 1 used Submit