Waterway Company's sales budget projects unit sales of part 1987 of 9,600 units in January, 11,900 units in February, and 12,500 units in March. Each unit of part 198Z requires 2 kg of materials, which cost $3 per kilogram. Waterway Company wants its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 25% of the next month's expected unit sales. These goals were met at December 31, 2021.