Waterways Corporation is preparing its budget for the coming year, 2025. The first step is to...

Transcribed Image Text:

Waterways Corporation is preparing its budget for the coming year, 2025. 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 2024 111,000 Unit sales for December 2024 103,000 Expected unit sales for January 2025 114,000 Expected unit sales for February 2025 114,000 Expected unit sales for March 2025 116,000 Expected unit sales for April 2025 Expected unit sales for May 2025 Unit selling price 127,000 139,000 $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, 2024, 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, 2024 totaled 11,400 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, 2024, totaled $120,595. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. SUPPOR Waterways Corporation is preparing its budget for the coming year, 2025. 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 2024 111,000 Unit sales for December 2024 103,000 Expected unit sales for January 2025 114,000 Expected unit sales for February 2025 114,000 Expected unit sales for March 2025 116,000 Expected unit sales for April 2025 Expected unit sales for May 2025 Unit selling price 127,000 139,000 $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, 2024, 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, 2024 totaled 11,400 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, 2024, totaled $120,595. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. SUPPOR