Waterways Corporation is preparing its budget for the coming year, 2020. 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 Unit sales for November 2019 114,000 Unit sales for December 2019 102,000 Expected unit sales for January 2020 114,000 Expected unit sales for February 2020 113,000 Expected unit sales for March 2020 117,000 Expected unit sales for April 2020 126,000 138,000 Expected unit sales for May 2020 $12 Unit selling price 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, 2019, totaled $183,600. 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, 2019, totaled 11,390 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, 2019, totaled $103,735. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour Manufacturing Overhead Indirect materials per labor hour 30t Indirect materials 30 per labor hour Indirect labor 50 per labor hour per labor hour Utilities 50 Maintenance 30 per labor hour $41,000 per month Salaries $18,300 per month Depreciation $2,400 per month Property taxes $1,300 per month Insurance $1,400 per month Maintenance Selling and Administrative Variable selling and administrative cost per unit is $1.50. $14,000 a month Advertising $1,600 a month Insurance $71,000 a month Salaries $2,600 a month Depreciation $3,200 a month Other fixedcosts Other Information The Cash balance on December 31, 2019, totaled $101,000, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2.40 per share for 4,89O shares outstand ing. 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 For the first quarter of 2020, prepare a sales budget. WATERWAYS CORPORATION Sales Budget For the First Quarter of 2020 First Quarter February March January Quarter Expected Unit Sales 344000 117000 114000 113000 $ $ $ Unit Selling Price 12 12 12 12 $ $ $ 1356000 1404000 Total Sales 1368000 4128000 eTextbook and Media For the first quarter of 2020, prepare a production budget. WATERWAYS CORPORATION Production Budget For the First Quarter of 2020 First Quarter March January February Expected Unit Sales 113000 114000 117000 11300 11700 Add Desired Ending Finished Goods Unit 11700 Total Required Units 124700 128700 125300 Less Beginning Finished Goods Unit 11400 11300 11700 For the first quarter of 2020, prepare a direct materials budget. (Round cost per pound to 2 decimal places, e.g. 0.25 and all other answers to 0 decimal places, e.g. 2,520.) WATERWAYS CORPORATION Direct Materials Budget For the First Quarter of 2020 First Quarter February January March Units to be Produced Direct Materials Per Unit Total Pounds Required for Production Desired Ending Inventory Add Total Materials Required Beginning Materials Inventory Less Direct Materials Purchases $ $ Cost Per Pound $ $ $ Total Cost of Direct Materials Purchases eTextbook and Media 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 For the First Quarter of 2020 First Quarter March February Q January Units to be Produced Direct Labor Time (Hours) Per Unit Total Required Direct Labor Hours $ $ Direct Labor Cost Per Hour $ $ $ $ Total Direct Labor Cost eTextbook and Media 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 O decimal places, e.g. 2,520. List Variable Costs first.) WATERWAYS CORPORATION Manufacturing Overhead Budget First Quarter February January March Variable Costs $ $ $ $ Indirect Materials WATERWAYS CORPORATION Manufacturing Overhead Budget First Quarter February January March Variable Costs $ $ Indirect Materials Indirect Labor Utilities Maintenance $ $ $ Total Variable Cost Fixed Costs Salaries Depreciation Property Taxes Maintenance Insurance $ $ $ $ Total Fixed Costs $ $ $ Total Manufacturing Overhead Direct Labor Hours WATERWAYS CORPORATION Manufacturing Overhead Budget First Quarter February Quarter January March $ $ $ $ $ $ $ $ $ $ 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 For the First Quarter of 2020 First Quarter March January February Quarter Budget Sales In Units $ $ Variable Expenses Per Unit $ $ $ Total Variable S & A Expense Fixed Expenses Advertising Insurance Salaries Depreciation Other $ $ $ $ Total Fixed Expenses $ $ $ Total S&A Expenses eTextbook and Media For the first quarter of 2020, prepare a schedule for expected cash collections from customers. Schedule of Expected Collections from Customers February January March Quarter Accounts $ $ $ $ receivable 12/31/19 January sales February sales March sales Total cash $ $ $ $ collections eTextbook and Media For the first quarter of 2020, prepare a schedule for expected payments for materials purchases. (Round answers to 0 decimal places, e.g. 2,520.) Schedule of Expected Cash Payments for Purchases January February March Quarter Accounts payable, $ $ $ 12/31/19 January February March For the first quarter of 2020, prepare a cash budget. (Round answers to O decimal places, e.g. 2,520.) WATERWAYS CORPORATION Cash Budget For the First Quarter of 2020 First Quarter January February March Quarter $ $ $ $ sbursements sbursements $ $ $