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. 114,000 103,000 114,000 Sales Unit sales for November 2019 Unit sales for December 2019 Expected unit sales for January 2020 Expected unit sales for February 2020 Expected unit sales for March 2020 Expected unit sales for April 2020 Expected unit sales for May 2020 Unit selling price 111,000 116,000 125,000 136,000 $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, 2019, totaled $185,400. 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 11,370 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 $104.580. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Manufacturing Overhead 30 per labor hour 50 per labor hour Indirect materials Indirect labor Utilities Maintenance 40 30 per labor hour per labor hour per month $41,000 Salaries Depreciation $17,900 per month Property taxes $2,400 per month $1,300 Insurance Maintenance per month per month $1,200 Selling and Administrative Variable selling and administrative cost per unit is $170. Advertising $16,000 a month Insurance $1,300 a month Salaries Depreciation Other fixed costs $72,000 a month $2,600 a month $3,100 a month Other Information The Cash balance on December 31, 2019, totaled $102,000, but management has decided it would like to maintain a cash balance of at least $700,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2.60 per share for 5.280 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 $490.000 equipment purchase is planned for February For the frest quarter of 2020, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, 9.5.25 and all other answers to decimal places, es 2,520. List Variable Costs first.) WATERWAYS CORPORATION Manufacturing Overhead Budget First Quarter January February March Quarter For the first quarter of 2020, prepare a schedule for expected cash collections from customers. Schedule of Expected Collections from Customers January February March Quarter Accounts receivable, 12/31/19 January sales February sales March sales Total cash collections For the first quarter of 2020, prepare a schedule for expected payments for materials purchases. (Round answers to o decimal places, e.g. 2,520.) Schedule of Expected Cash Payments for Purchases January February March Quarter Accounts payable, 12/31/19 January February March Total payments For the first quarter of 2020, prepare a cash budget. (Round answers to decimal places, ... 2,520.) For the first quarter of 2020, prepare a cash budget. (Round answers to decimal places, e.g. 2,520.) WATERWAYS CORPORATION Cash Budget First Quarter January February March Quarter For the first quarter of 2020, prepare a selling and administrative budget. [Enter per unit expenses rounded to 2 decimal places. E$ 125) WATERWAYS CORPORATION Selling and Administrative Expense Budget For the First Quarter of 2020 First Quarter February January March Quarter . $
