Waterways Continuing Problem 21 (Part Level Submission) Waterways Corporation is
ID: 2573771 • Letter: W
Question
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 113,000 Expected unit sales for February 2017 112,500 Expected unit sales for March 2017116,000 Expected unit sales for April 2017 Expected unit sales for May 2017 Unit selling price 112,500 102,100 125,000 137,500 $12 water ways likes to keep 10% of the next month's unit sales in ending inventory Al sales are on account. 85% o the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month a er sale. Accounts receivable on December 31, 2016, totaled $183,780 Direct Materials Item Metal Plastic Rubber Amount Used per Unit 1 lb 58c per lb. 12 oz 6e per oz 40z @ 5¢ per oz 2 Ibs per unit Inventory, Dec. 31 5,177.5 Ibs 3,883.125 lbs 1,294.375 bs 10,355.0 Ibs Metal, plastic, and rubber together are 75¢ per pound per unit.Explanation / Answer
Answer:
Waterway corporation
Selling and administrative Expanses Budget
For the first quarter of 2017
Jan
Feb
March
Quarter
Sales in units
113000
112500
116000
341500
Variable expanses per unit
1.6
1.6
1.6
1.6
Total variable S&A Expanses
180800
180000
185600
546400
Fixed costs
Advertising
15000
15000
15000
45000
Insurance
1400
1400
1400
4200
Salaries
72000
72000
72000
216000
Depreciation
2500
2500
2500
7500
Other Fixed cost
3000
3000
3000
9000
Fixed manufacturing overhead
93900
93900
93900
281700
Total manufacturing overhead
274700
273900
279500
828100
Waterway corporation
Selling and administrative Expanses Budget
For the first quarter of 2017
Jan
Feb
March
Quarter
Sales in units
113000
112500
116000
341500
Variable expanses per unit
1.6
1.6
1.6
1.6
Total variable S&A Expanses
180800
180000
185600
546400
Fixed costs
Advertising
15000
15000
15000
45000
Insurance
1400
1400
1400
4200
Salaries
72000
72000
72000
216000
Depreciation
2500
2500
2500
7500
Other Fixed cost
3000
3000
3000
9000
Fixed manufacturing overhead
93900
93900
93900
281700
Total manufacturing overhead
274700
273900
279500
828100
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