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.

Sales
Unit sales for November 2021		111,000
Unit sales for December 2021		101,000
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		125,000
Expected unit sales for May 2022		138,000
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 $181,800. 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, 2021 totaled 11,200 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, 2021, totaled $120,595.

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		50		per labor hour
Maintenance		30		per labor hour
Salaries		$43,000		per month
Depreciation		$17,700		per month
Property taxes		$2,900		per month
Insurance		$1,200		per month
Maintenance		$1,300		per month

Selling and Administrative
Variable selling and administrative cost per unit is $1.50.
Advertising		$16,000	a month
Insurance		$1,500	a month
Salaries		$73,000	a month
Depreciation		$2,300	a month
Other fixed costs		$2,800	a month

Other Information The Cash balance on December 31, 2021, totaled $99,000, 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 4,860 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 $510,000 equipment purchase is planned for February.

Please help me with

1. For the first quarter of 2022, prepare a schedule for expected cash collections from customers.

2. For the first quarter of 2022, prepare a schedule for expected payments for materials purchases.

3. For the first quarter of 2022, prepare a cash budget.

For the first quarter of 2022, prepare a sales budget. WATERWAYS CORPORATION Sales Budget For the First Quarter of 2022 First Quarter January February March Expected Unit Sales 112,000 112,000 116,000 $ Unit Selling Price 12 $ 12 $ 12 Total Sales 1344000 1344000 1392000 e Textbook and Media Attempts: unlimited b) Your answer is correct. For the first quarter of 2022, prepare a production budget. WATERWAYS CORPORATION Production Budget For the First Quarter of 2022 First Quar January February Expected Unit Sales 112.000 112,000 Add V: Desired Ending Finished Goods Unit 11 200 11600 Total Required Units 123,200 123,600 Less : Beginning Finished Goods Unit 11200 11200 i Required Production Units 112,000 112,400 e Textbook and Media Attempts: unlimited For the first quarter of 2022, prepare a sales budget. WATERWAYS CORPORATION Sales Budget For the First Quarter of 2022 First Quarter February January March Quarter 112,000 112,000 116,000 340,000 12 $ 12 $ 12 $ 12 1344000 $ 1344000 1392000 $ 4080000 e Textbook and Media Attempts: unlimited (b) Your answer is correct. For the first quarter of 2022, prepare a production budget. WATERWAYS CORPORATION Production Budget For the First Quarter of 2022 First Quarter January February March Quarter 112.000 112,000 116,000 11.200 11600 12500 123 200 123,600 128,500 11200 11200 i 11600 112,000 112,400 116,900 341,300 e Textbook and Media Attemnts unlimited For the first quarter of 2022, prepare a direct materials budget. (Round cost per pound to 2 decimal places, eg. 0.25 and all other answers to O decimal places, eg 2,520.) WATERWAYS CORPORATION Direct Materials Budget For the First Quarter of 2022 First January February Units to be Produced 112.000 112,400 Direct Materials Per Unit 2 2 Total Pounds Required for Production 224000 224800 Add V: Desired Ending Inventory 11240 11690 Total Materials Required 235240 236490 Less : Beginning Materials Inventory 11200 i 11240 Direct Materials Purchases 224040 225250 Cost Per Pound $ .8 $ .8 Total Cost of Direct Materials Purchases $ 179232 $ 180200 e Textbook and Media Attempts: unlimited (d) Your answer is correct. For the first quarter of 2022, prepare a direct labor budget. (Round time per unit to nearest hour, eg. 30 minutes will be rounded to 0.5 hours) WATERWAYS CORPORATION Direct Labor Budget For the First Quarter of 2022 First Quarter January February Units to be Produced 112,000 112,400 Direct Labor Time (Hours) Per Unit .2 Total Required Direct Labor Hours 22400 22480 Direct Labor Cost Per Hour $ 9 $ 9 $ Total Direct Labor Cost $ 201600 $ 202320 $ e Textbook and Media Attempts: unlimited For the first quarter of 2022, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, eg. 5.25 and all other answers to decimal places, eg. 2,520. List Variable Costs first.) WATERWAYS CORPORATION Manufacturing Overhead Budget For the First Quarter of 2022 First Quarter February January Variable Costs Indirect Labor $ 11200 $ 11240 $ Indirect Materials 1990 6720 6744 Maintenance 6720 6744 Utilities 11,200 11,240 Total Variable Costs 35,840 $ 35,968 $ Fixed Costs Depreciation 17,700 17,700 Insurance 1,200 1.200 Maintenance 1,300 1,300 Property Taxes 2.900 2,900 Salaries 43,000 43,000 Total Fixed Costs $ 66,100 $ 66,100 $ Total Manufacturing Overhead $ 101.940 102,068 4 Direct Labor Hours 22400 22480 Predetermined overhead rate for the quarter For the first quarter of 2022, prepare a selling and administrative budget. (Enter per unit expenses rounded to 2 decimal places. eg. 1.25) WATERWAYS CORPORATION Selling and Administrative Expense Budget For the First Quarter of 2022 First Quarter January February M Budget Sales In Units 112,000 112.000 Variable Expenses Per Unit $ 1.5 $ 1.5 $ Total Variable S&A Expense V $ 168000 $ 168000 $ $ Fixed Expenses Advertising $ 16,000 i $ 16,000 i $ $ Depreciation 2,300 i 2300 i Insurance 1,500 i 1,500 i Other 2,800 i 2.800 i Salaries 73,000 i 73.000 i Total Fixed S&A Expenses $ 95,600 i $ 95,600 i $ Total S&A Expenses $ $ 263,600 $ 263,600 $ e Textbook and Media Attempts: unlimited