Waterway Companys sales budget projects unit sales of part 198Z of 10,200 units in January, 11,800 units in February, and 13,700 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Waterway Company desires its ending raw materials inventory to equal 40% of the next months production requirements, and its ending finished goods inventory to equal 20% of the next months expected unit sales. These goals were met at December 31, 2021.

Prepare a production budget for January and February 2022. a WATERWAY COMPANY Production Budget January February A: Prepare a direct materials budget for January 2022. WATERWAY COMPANY Direct Materials Budget January $ - $