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

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 $104,305. 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 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 $490,000 equipment purchase is planned for February.

(f)

For the first quarter of 2022, prepare a selling and administrative budget. (Enter per unit expenses rounded to 2 decimal places. E.g. 1.25)

11 columns should be answered!

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 Unit sales for December 2021 Expected unit sales for January 2022 Expected unit sales for February 2022 Expected unit sales for March 2022 Expected unit sales for April 2022 Expected unit sales for May 2022 Unit selling price 113,000 103,000 112,000 112,000 116,000 127,000 137,000 $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, 2021, totaled $185,400. Direct Materials Direct materials cost 80c 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 $104,305. 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 Indirect labor Utilities Maintenance : Salaries Depreciation Property taxes Insurance- Maintenance 30 50 40 20 $42,000 $16,200 $2,900 $1,300 $1,400 per labor hour per labor hour per labor hour per labor hour per month per month per month per month per month Selling and Administrative Variable selling and administrative cost per unit is $1.80. $17,000 a month $1,300 a month $72,000 a month $2,800 a month $2,900 a month Advertising Insurance Salaries Depreciation Other fixed costs 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. (f) For the first quarter of 2022, prepare a selling and administrative budget. (Enter per unit expenses rounded to 2 decimal places. E.g. 1.25) > January WATERWAYS CORPORATION Selling and Administrative Expense Budget For the First Quarter of 2022 11 $ $ A First Quarter February March $ $ Quar