Waterways Corporation is preparing its budget for the coming year, 2017. The first step is to plan for the first quarter of that coming year. Waterways gathered the following information from the managers.

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Sales Unit sales for November 2016 112,500 Unit sales for December 2016 102,100 Expected unit sales for January 2017 113,000 Expected unit sales for February 2017 112,500 Expected unit sales for March 2017 116,000 Expected unit sales for April 2017 125,000 Expected unit sales for May 2017 137,500 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, 2016, totaled $183,780. Direct MaterialsitemAmount Used per Unitinventory, Dec. 31Metal1 Ib @ 58¢ per Ib.5,177.5 IbsPlastic12 oz @ 6¢ per oz3,883.125 lbsRubber4 oz @ 5¢ per oz1,294.375 lbs2 lbs per unit10,355.0 lbs Metal, plastic, and rubber together are 75c per pound per 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, 2016, totaled $120,595. Raw Materials on December 31, 2016, totaled 11,295 pounds. Sales Unit sales for November 2016 112,500 Unit sales for December 2016 102,100 Expected unit sales for January 2017 113,000 Expected unit sales for February 2017 112,500 Expected unit sales for March 2017 116,000 Expected unit sales for April 2017 125,000 Expected unit sales for May 2017 137,500 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, 2016, totaled $183,780. Direct MaterialsitemAmount Used per Unitinventory, Dec. 31Metal1 Ib @ 58¢ per Ib.5,177.5 IbsPlastic12 oz @ 6¢ per oz3,883.125 lbsRubber4 oz @ 5¢ per oz1,294.375 lbs2 lbs per unit10,355.0 lbs Metal, plastic, and rubber together are 75c per pound per 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, 2016, totaled $120,595. Raw Materials on December 31, 2016, totaled 11,295 pounds.

Answer rating: 100% (QA)

SALES BUDGET Sales Budget Jan Feb Mar Qtr Expected unit sales 113000 112500 116000 341500 Unit Selling Price 12 12 12 12 Total Sales 1356000 1350000 1392000 4098000 PRODUCTION BUDGET Production Budget ... View the full answer