THI 1 Normal 1 No Spac. Heading 1 Heading 2 Paragraph Styles www 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 113,000 Unit sales for December 2019 102,000 Expected unit sales for January 2020 114,000 Expected unit sales for February 2020 111,000 Expected unit sales for March 2020 115,000 Expected unit sales for April 2020 125,000 Expected unit sales for May 2020 139,000 Unit selling price $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 $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 11,370 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 $103,725. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Manufacturing Overhead Indirect materials 30C per labor hour Aav PO ZU PA AaBbccc AaBbccDc AaBbc AaBbcc AaBbc 1 Normal 11 No Spac.. Heading 1 Heading 2 Heading 3 e Find Replace Select Styles Editing Paragraph Manufacturing Overhead Indirect materials 30 per labor hour Indirect labor 504 per labor hour Utilities sot per labor hour Maintenance 204 per labor hour Salaries $42,000 per month Depreciation $15,100 per month Property taxes $3,000 per month Insurance $1,100 per month Maintenance $1,300 per month Selling and Administrative Variable selling and administrative cost per unit is $1.50. Advertising Insurance Salaries $14,000 a month $1,300 a month $74,000 a month Styles 5 Editin Advertising Insurance Salaries Depreciation Other fixed costs $14,000 a month $1,300 a month $74,000 a month $2,800 a month $2,900 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 $800,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2.30 per share for 4,750 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 $450,000 cequipment purchase is planned for February. e first quarter of 2020, prepare a sales budget WATERWAYS CORPORATION Sales Buret focul TUNCI UNU Tepuys Um die lusu UAY UI ile Mr. A $450,000 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 January February March Quarter Direct Labor Direct Materials Expected Unit Sales Production Units Total Sales Unit Selling Price For the first quarter of 2020, prepare a production budget. WATERWAYS CORPORATION Production Budget First Quarter February March January Quarter direct materials budget. (Round cost per pound to 2 decimal places, 6.9. 0.25 an Direct Materials Purchases Expected Unit Sales Beginning Direct Materials Beginning Finished Goods Unit Direct Materials Per Unit Total Required Units Desired Ending Finished Goods Unit Desired Ending Direct Materials Required Production Units Total Materials Required WATERWAYS CORPORATION Direct Materials Budget First Quarter February March Quart January 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 ans WATERWAYS CORPORATION Direct Materials Budget First Quarter February March January Quarter v N Direct Materials Purchases Cost Per Pound Direct Labor Time Per Unit Total Required Direct Labor Hours Total Materials Required Direct Materials per Unit Total Direct Labor Cost Direct Labor Cost Per Hour $ Total Cost of Direct Materials Purchases Total Pounds Required for production s Units to be produced Beginning teaterials inventor Desired Ending Inventory For the first quarter of 2020, prepare a direct labor budget. (Round time per unit to nearest hour, e.9. 30 minutes will be rounded ta. WATERWAYS CORPORATION Dictator Buda X. 10