Gary Johnson, Waterway & Johnson Fabricators' production manager, has just received the company's sales budget for the first quarter:

		January		February		March		Quarter
Budgeted unit sales		23,000			26,000			32,000			81,000
Budgeted ending inventory		6,500			8,000			9,000			9,000
Total units required		29,500			34,000			41,000			90,000
Beginning inventory		3,200			6,500			8,000			3,200
Budgeted production		26,300			27,500			33,000			86,800

Its manufacturing overhead budget for the first quarter is as follows:

	January		February		March		Quarter
DLH worked		5,260			5,500			6,600			17,360
VOH per DLH		$ 1.75			$ 1.75			$ 1.75			$ 1.75
Budgeted VOH		9,205			9,625			11,550			30,380
Budgeted FOH		101,900			101,900			101,900			305,700
Total Budgeted MOH		111,105			111,525			113,450			336,080
Noncash MOH items
Depreciation		35,000			35,000			35,000			105,000
Total Cash MOH cost		$ 76,105			$ 76,525			$ 78,450			$ 231,080

He also has received the direct materials purchases budget and direct labor budget which were as follows:

		January		February		March		Quarter		April
Budgeted production		26,300			27,500			33,000			86,800			33,500
Standard pounds per unit		6			6			6			6			6
Production needs		157,800			165,000			198,000			520,800			201,000
Budgeted ending inventory		16,500			19,800			20,100			20,100
Total DM required (lbs.)		174,300			184,800			218,100			540,900
Beginning inventory		12,000			16,500			19,800			12,000
Budgeted purchases (lbs.)		162,300			168,300			198,300			528,900
Standard cost per pound		$ 1.00			$ 1.00			$ 1.00			$ 1.00
Budgeted purchases cost		$ 162,300			$ 168,300			$ 198,300			$ 528,900

		January		February		March		Quarter
Budgeted production		26,300			27,500			33,000			86,800
Standard DLH per unit		0.20			0.20			0.20			0.20
Total DLH required		5,260			5,500			6,600			17,360
Standard wage rate		$ 20			$ 20			$ 20			$ 20
Budgeted DL cost		$ 105,200			$ 110,000			$ 132,000			$ 347,200

Joshua plans to have 3,200 finished bricks at a cost of $ 46,000 in inventory at the beginning of the year. The company applies manufacturing overhead based on direct labor hours, and the current predetermined rates are $ 12.25 per direct labor hour for fixed manufacturing overhead and $ 1.75 per direct labor hour for variable manufacturing overhead. Prepare Waterway & Hill's ending inventory and cost of goods sold budget for the first quarter. Assuming that the company has no beginning and ending WIP inventory.

Direct Materials Cost of Goods Sold Beginning DM Inventory $ 12000 Beginning WIP $ i DM Purchases 528900 Direct Materials used DM used in Production 520800 Direct Labor Ending DM Inventory 20100 Overhead Finished Goods Inventory Total Mfg. Cost Unit Costs Direct Material Ending WIP Direct Labor COGM Overhead Beginning FG Inventory Total Std. Cost per unit Ending FG Inventory Ending FG Inventory (units) Budgeted COGS Ending FG Inventory ($)