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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.

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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 imventory. All sales are on account. 85% of the Accounts Reccivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the monthafter sale. Accounts receivable on December 31,2021 , totaled $181,800. Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit. Waterways likes to keep S.8 of the materials needed for the next month in its ending imentory. Rimw Materials on December 31,2021 totaled 11,380 pounds. Payment for materials is made within 15 days, 503 is paid in the month of parchase, and 500 is paid in thet month after purchare. Accounts Payable on December 31,2021 , totaled $120,595. Direct Labor Labor requires 12 minutes per unit for completiont and is paid at arate of $6 per hour. SalariesDepreciationPropertytaiesInsuranceMaintenunce$41,000$15,000$3,000$1,400$1,300permonthpermonthpermonthpermonthpermonth Selling and Administrative Variable selling and administrative cost per unit is $1.70. AdvertidineInsurance:SalariesDepreciationOtherfixedcosts$13,000amonth$1,500amonth$70,000amonth$2,600amonth$2,700amonth Other Information The Cash balarice on Deceinber 31, 2021, totaled 5100000 , but maragement has decided it would like tomantan a cash balarice of at least $000000 beginning on January 31, 2022. Dwidends are paid each ementhat the rate of 52.50 per share for 5340ahares outstandine. The company has an open line of credit with Raminy A Dank. The terms of the apreement fequires boerowing to be in 51,000 increments at 68 interest. WaterWays borroms on the firh day of the monch and repan en the last edy of the mionth. A. $450,000 equipment purchame is planned for february For the first quarter of 2022, prepare a sales budget. For the first quarter of 2022, prepare a production budget. For line Hicit Quy ter of 2022 First Quarter WATERWAYS CORPORATION Direct Labor Budget For the Finst Quartet of 2022 For the first quarter of 2022. prepare a marmiacturing overhead budget. (Round overhead rate to 2 decimal ploces, eg. 5.25 and all other answers to 0 decimal places, es. 25,50. List Varioble Costs first.) First Quarter February s 5 I 5

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