Waterways Continuing Problem-10 (Part Level Submission)
Waterways Corporation has recently acquired a small
manufacturing operation in British Columbia that produces one of
its more popular items. This plant will provide these units for
resale in retail hardware stores in British Columbia and Alberta.
Because the budget prepared by the plant was incomplete, Jordan
Leigh, Waterways’ CFO, was sent to B.C. to oversee the plant’s
budgeting process for the second quarter of 2017.
Jordan asked the various managers to collect the following
information for preparing the second-quarter budget.
Sales | ||
Unit sales for February 2017 | 100,000 | |
Unit sales for March 2017 | 112,000 | |
Expected unit sales for April 2017 | 120,000 | |
Expected unit sales for May 2017 | 125,000 | |
Expected unit sales for June 2017 | 130,000 | |
Expected unit sales for July 2017 | 145,000 | |
Expected unit sales for August 2017 | 170,000 | |
Average unit selling price | $13 |
Based on the experience from the home plant, Jordan has suggested
that the B.C. plant keep 10% of the next month’s unit sales in
ending inventory. The plant has contracts with some of the major
home hardware giants, so all sales are on account; 50% of the
accounts receivable is collected in the month of sale, and the
balance is collected in the month after sale. This was the same
collection pattern from the previous year. The new plant has no bad
debts.
Direct Materials
The combined quantity of direct materials (consisting of metal,
plastic and rubber) used in each unit is 1.20 kg. Metal, plastic,
and rubber together amount to $1.50 per kg. Inventory of combined
direct material on March 31 consisted of 14,460 kg.
This plant likes to keep 10% of the materials needed for the next
month in its ending inventory. Fifty percent of the payables is
paid in the month of purchase, and 50% is paid in the month after
purchase.
Accounts Payable on March 31 will total $129,000.
Direct Labour
Labour requires 15 minutes per unit for completion and is paid at
an average rate of $12 per hour.
Manufacturing Overhead | ||||
Indirect materials | $0.70 | per labour hour | ||
Indirect labour | $0.50 | per labour hour | ||
Utilities | $0.40 | per labour hour | ||
Maintenance | $0.30 | per labour hour | ||
Salaries | $44,400 | per month | ||
Depreciation | $14,000 | per month | ||
Property taxes | $2,150 | per month | ||
Insurance | $1,000 | per month | ||
Janitorial | $2,600 | per month |
Selling and Administrative | |||
Variable selling and administrative cost per unit is $1.50. | |||
Advertising | $14,000 | a month | |
Depreciation | $2,400 | a month | |
Insurance | $1,100 | a month | |
Other fixed costs | $3,400 | a month | |
Salaries | $77,000 | a month |
Other Information
The Cash balance on March 31 will be $111,000, but Waterways has
decided it would like to maintain a cash balance of at least
$600,000 beginning on April 30. The company has an open line of
credit with its bank. The terms of the agreement require borrowing
to be in $1,000 increments at 3% interest. Borrowing is considered
to be on the first day of the month and repayments are on the last
day of the month. Assume interest is paid at the end of the
quarter.
In May, $660,000 of new equipment to update operations will be
purchased.
Three months’ insurance is prepaid on the first day of the first
month of the quarter.
Question: Fill in the blank
WATERWAYS CORPORATION | ||||
British Columbia Production Plant | ||||
Production Budget for the 2nd Quarter, 2017 | ||||
April | May | June | Total | |
Expected unit sales | 120000 | 125000 | 130000 | 375000 |
Add: Desired ending inventory | 12500 | 13000 | 14500 | 14500 |
Total needs | 132500 | 138000 | 144500 | 389500 |
Less: Beginning inventory | 12000 | 12500 | 13000 | 12000 |
Budgeted units to be produced | 120500 | 125500 | 131500 | 377500 |
Note: Kindly select appropriately from the drop-downs since the same have not been provided with the question.
Waterways Continuing Problem-10 (Part Level Submission) Waterways Corporation has recently acquired a small manufacturing operation in...
Waterways Continuing Problem-10 (Part Level Submission) Waterways Corporation has recently acquired a small manufacturing operation in British Columbia that produces one of its more popular items. This plant will provide these units for resale in retail hardware stores in British Columbia and Alberta. Because the budget prepared by the plant was incomplete, Jordan Leigh, Waterways’ CFO, was sent to B.C. to oversee the plant’s budgeting process for the second quarter of 2017. Jordan asked the various managers to collect the...
all the pictures go together...Thank you so much! Waterways Continuing Problem 21 (Part Level Submission) 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 Unit sales for December 2016 Expected unit sales for January 2017 Expected unit sales for February 2017 Expected unit sales for March 2017 112,500 102,100 113,000...
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 114,000 Unit sales for December 2019 102,000 Expected unit sales for January 2020 114,000 Expected unit sales for February 2020 113,000 Expected unit sales for March 2020 117,000 Expected unit sales for April 2020 126,000...
Waterways Continuing Problem (This is a continuation of the Waterways Problem from Chapters 1 through 8.) WCP9 Waterways Corporation is preparing its budget for the coming year, 2014. The first step is to plan for the first quarter of that coming year. Waterways gathered the fol- lowing information from the managers. Sales 112.500 102.100 113,000 Unit sales for November 2013 Unit sales for December 2013 Expected unit sales for January 2014 Expected unit sales for February 2014 Expected unit sales...
Can you please post the cash budget solution to this posted question:Waterways Continuing Problem-10 (Part Level Submission) Waterways Corporation has recently acquired a small manufacturing operation in...Waterways Continuing Problem-10 (Part Level Submission)
Waterways Continuing Problem (This is a contineation of the Waterways Problem froes Chapsers 1 through 8. wCP9 Waterways Corporation is preparing ins badget for the coming yeat 2014. The firt step is to plan for the first quarter of that coming vear Waterways gathered the fol- lowing information from the managers Sales Unit sales for November 2013 Unit sales for December 2013 Espected unit sales fo January 2014 Expected unit sales for February 2014 Expected unit sales Sor March 2014...
Question: Waterways Continuing Problem 12 At the end of June the manager of the B.C. manufacturing plant was provided with the following variance analysis report: Favourable (F)/ Unfavourable (U) Budget Actual Variance Production in units 310,000 323,000 13,000 Production costs: Direct material $(11,781) (25,440) (4,538) $737,800 $749,581 U Direct labour Variable overhead costs Fixed overhead costs 1,395,000 131,750 147,250 1,420,440 U 136,288 U 139,870 7,380 F Total production costs $(34,379) $2,411,800 $2,446,179 U The manager immediately called the production supervisor,...
I provided photos that have information need to answer the question. I only need help with the picture of Chart D (for the first quater of 2017, prepare a direct labor budget.) its the picture of the blank chart. Thank you! 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...
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 114,000 Unit sales for December 2019 101,000 Expected unit sales for January 2020 114,000 Expected unit sales for February 2020 112,000 Expected unit sales for March 2020 117,000 Expected unit sales for April 2020 126,000...
Weygandt, Accounting Principles, 13e Help I System Announcements CAL CULATOR PRINTER VERSION BACK NEX Question 2 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 Unit sales for December 2019 Expected unit sales for January 2020 Expected unit sales for February 2020 Expected unit...