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. 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 $185,400. Direct Materials Direct materlals 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 11,390 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 31,2021, totaled \$120,595. 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 Materlats on December 31,2021 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, 2021, totaled $120,595. Selling and Administrative Variable selling and administrative cost per unit is $1.50. Variable selling and administrative cost per unit is $1.50. Other Information The Cash balance on December 31,2021 , towaled $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 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 $460,000 equipment purchase is planned for February (a) For the first quarter of 2022 , prepare a sales budget. For the first quarter of 2022 , prepare a sales budget. (b) For the first quarter of 2022. prepare a production budget. For the first quarter of 2022 , prepare a sales budget. (b) For the first quarter of 2022, prepare a production budget Your answer is correct. For the first quarter of 2022, prepare a production budget. Attempts: 3 of 4 used rur une nrst quarter of 20Z, prepare a production budget. For the first quarter of 2022, prepare a direct materials budget, (Round cost per pound to 2 decimal places, e.s. 0.25 and all other answers to 0 decimal places, e.8. 2,520.) For the first quarter of 2022, 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.8.2,520.) For the first quarter of 2022 prepare a direct labor budget. (Round time per uait to nearest hour, e.g. 30 minutes will be rounded to 0.5 hours) For the first quarter of 2022, prepare a direct labor budget. (Round time per unit to nearest hour, es. 30 minutei will be rounded to 0.5 hours) For the first quarter of 2022, prepsre a manufacturing overhead budget. (Round overhead rate to 2 decimal places, e.s. 5.25 and all other answers to 0 decimal ploces, e.8. 2.520. tist Variable Costs first. 1 Last saved 1 second ago. Question 6 of 6 21.21/45 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. 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 $185,400. Direct Materials Direct materlals 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 11,390 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 31,2021, totaled \$120,595. 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 Materlats on December 31,2021 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, 2021, totaled $120,595. Selling and Administrative Variable selling and administrative cost per unit is $1.50. Variable selling and administrative cost per unit is $1.50. Other Information The Cash balance on December 31,2021 , towaled $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 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 $460,000 equipment purchase is planned for February (a) For the first quarter of 2022 , prepare a sales budget. For the first quarter of 2022 , prepare a sales budget. (b) For the first quarter of 2022. prepare a production budget. For the first quarter of 2022 , prepare a sales budget. (b) For the first quarter of 2022, prepare a production budget Your answer is correct. For the first quarter of 2022, prepare a production budget. Attempts: 3 of 4 used rur une nrst quarter of 20Z, prepare a production budget. For the first quarter of 2022, prepare a direct materials budget, (Round cost per pound to 2 decimal places, e.s. 0.25 and all other answers to 0 decimal places, e.8. 2,520.) For the first quarter of 2022, 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.8.2,520.) For the first quarter of 2022 prepare a direct labor budget. (Round time per uait to nearest hour, e.g. 30 minutes will be rounded to 0.5 hours) For the first quarter of 2022, prepare a direct labor budget. (Round time per unit to nearest hour, es. 30 minutei will be rounded to 0.5 hours) For the first quarter of 2022, prepsre a manufacturing overhead budget. (Round overhead rate to 2 decimal places, e.s. 5.25 and all other answers to 0 decimal ploces, e.8. 2.520. tist Variable Costs first. 1 Last saved 1 second ago. Question 6 of 6 21.21/45