Waterways Continuing Problem 23 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 Expected unit sales for February 2017 Expected unit sales for March 2017 Expected unit sales for April 2017 Expected unit sales for May 2017 Unit selling price 112,500 102,100 113,000 112,500 116,000 125,000 137,500 $12 rways likes to keep 10% or the next month's unit sales in ending inventory. All sales are on account. 85% or the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receiva are collected in the month after sale. Accounts receivable on December 31, 2016, totaled $183,780 Direct Materials Item Metal Plastic Rubber Amount Used per Unit 1 lb 584 per lb 12 oz 6c per oz 4 oz 5 per oz 2 lbs per unit Inventory, Dec. 31 5,177.5 lbs 3,883.125 lbs 1,294.375 lbs 10,355.0 lbs Metal, plastic, and rubber together are 75 per pound per unit. waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Payment for materials is made within 15 days, 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2016, totaled $120,595. Raw Materials on December 31, 2016, totaled 11,295 pounds