process for the second quarter of $2023.$

the previous year. The new plant has no bad debts.

Direct Materials

rubber together amount to $$1\mathrm{.}50$ per kg$.$ Imentory of combined direct materials on March $31$ consisted of $29,640$ kg$.$

the month of purchase, and $5096$ is paid in the month after purchase.

Accounts payable on March $31$ will total $$120,600.$

Direct Labour

Labour requires $15$ minutes per unit for completion and is paid at an average rate of $$20$ per hour

Selling and Administrative

Variable selling and administrative expenses per unit are $$150.$

Other Information

The cash balance on March $31$ will be $$138,500,$ but Waterways has decided it wbuld like to maintain a carsh balance of at least

$$400,000$ beginning on April $30.$ The compary has an Dpen line of credit vith its bank. The terms of the agreement require borrowing

to be in $$1,000$ increments at $4\%$ interest. Borrowirg is considered to be on the first day of the month and repayments and interest

payments are on the last day of the month.

In May, $$700,000$ 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.