Question

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. 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 $12 Unit selling price 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 MaterialsltemAmount Used per UnitInventory, Dec. 31Metali lb @ 58¢ per lb.5,177.5 lbsPlastic12 oz @ 6c per oz3,883.125 lbsRubber4 oz @ 5c per oz1,294.375 lbs2 lbs per unit10,355.0 lbs Metal, plastic, and rubber together are 75€ 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.

I have the answers for #'s 1-4. I really only need #'s 5-9. But feel free to answer 1-4 again so others can see.

Answer 1

Waterways corporation
Manufacturing overhead
For the quarter ending March 2017

	JAN	FEB	MAR	QUARTER
VARIABLE
Indirect material	0.3	0.3	0.3
Indirect labour	0.5	0.5	0.5
Utilities	0.45	0.45	0.45
maintenance	0.25	0.25	0.25
Total variable OH Per unit	1.5	1.5	1.5
Total labor hour (from direct labor budget)	22591	22570	23380
Total variable OH	33886.5	33855	35070	102811.5
FIXED
Salaries	42000	42000	42000	126000
Depreciation	16800	16800	16800	50400
Property taxes	2675	2675	2675	8025
insurance	1200	1200	1200	3600
maintenance	1300	1300	1300	3900
Total fixed OH	63975	63975	63975	191925
Total manufacturing OH (Variable+Fixed)	97861.5	97830	99045	294736.5

Waterways Corporation
Selling and Administrative OH
for Quarter ending March 2017

	JAN	FEB	MAR	QUARTER
VARIABLE
Selling and administrative OH in $	1.60	1.60	1.60
Units Produced (from production OH )	112955	112850	116900
Total variable OH (In $)	180728	180560	187040	548328
FIXED
Advertising	15000	15000	15000	45000
Insurance	1400	1400	1400	4200
Salaries	72000	72000	72000	216000
Depreciation	2500	2500	2500	7500
Other fixed costs	3000	3000	3000	9000
Total fixed Costs	93900	93900	93900	281700
Total OH (Variable+Fixed)	274628	274460	280940	830028

Waterways Corporation
Schedule of expected Collection from customers
for the quarter ending March 2017

	JAN	FEB	MAR	QUARTER
A/C Receeivable	183780			183780
January Sales (85% in Jan and 15% in Feb)	1152600	203400		1356000
Feb sales (85% in feb and 15% in march)		1147500	202500	1350000
March Sales (85% in march and 15% in April)			1183200	1183200
Total	1336380	1350900	1385700	4072980

WaterWays Corporation
Schedule of expected cash payments for the purchase
for the quarter ending March 2017

	JAN	FEB	MAR	QUARTER
A/C Payable	120595			120595
Jan purchases(50% in Jan and 50% in Feb)	42358.12	42358.12		84716.25
Feb purchases (50% Feb and 50% march )		42318.75	42318.75	84637.5
March purchases (50% in march and 50% in April)			43837.5	43837.5
Total	162953.12	84676.87	86156.25	333786.25