Waterways Corporation is preparing its budget for the coming year, 2022. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process.

Sales
Unit sales for November 2021		114,000
Unit sales for December 2021		103,000
Expected unit sales for January 2022		114,000
Expected unit sales for February 2022		111,000
Expected unit sales for March 2022		116,000
Expected unit sales for April 2022		125,000
Expected unit sales for May 2022		136,000
Unit selling price		$12

Waterways likes to keep 10% of the next months unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2021, totaled $185,400. Direct Materials Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit. Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2021 totaled 11,370 pounds. 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, 2021, totaled $120,595.

Other Information The Cash balance on December 31, 2021, totaled $102,000, but management has decided it would like to maintain a cash balance of at least $700,000 beginning on January 31, 2022. Dividends are paid each month at the rate of $2.60 per share for 5,280 shares outstanding. The company has an open line of credit with Romneys Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 9% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $490,000 equipment purchase is planned for February.

WATERWAYS CORPORATION Direct Materials Budget choose the accounting period For the Month Ending March 2022March 2022For the First Quarter of 2022
		First Quarter
		January		February		March		Quarter
select an opening direct material budget item Total Pounds Required for ProductionTotal Required Direct Labor HoursDesired Ending InventoryTotal Materials RequiredBeginning Materials InventoryTotal Direct Labor CostDirect Materials Per UnitDirect Labor Time Per UnitDirect Labor Cost Per HourCost Per PoundDirect Materials PurchasesTotal Cost of Direct Materials PurchasesUnits to be Produced		enter a number of units		enter a number of units		enter a number of units
select an item Desired Ending InventoryCost Per PoundUnits to be ProducedTotal Direct Labor CostTotal Materials RequiredDirect Materials Per UnitTotal Pounds Required for ProductionDirect Labor Time Per UnitDirect Materials PurchasesTotal Cost of Direct Materials PurchasesBeginning Materials InventoryDirect Labor Cost Per HourTotal Required Direct Labor Hours		enter an amount of pounds		enter an amount of pounds		enter an amount of pounds
select a summarizing line for the first part Direct Materials Per UnitDesired Ending InventoryTotal Pounds Required for ProductionCost Per PoundUnits to be ProducedTotal Cost of Direct Materials PurchasesDirect Materials PurchasesDirect Labor Time Per UnitBeginning Materials InventoryDirect Labor Cost Per HourTotal Materials RequiredTotal Required Direct Labor HoursTotal Direct Labor Cost		enter a total amount of pounds for the first part		enter a total amount of pounds for the first part		enter a total amount of pounds for the first part
select between addition and deduction AddLess: select an item Cost Per PoundDesired Ending InventoryDirect Materials PurchasesDirect Materials Per UnitTotal Direct Labor CostDirect Labor Cost Per HourBeginning Materials InventoryTotal Required Direct Labor HoursUnits to be ProducedTotal Materials RequiredTotal Pounds Required for ProductionDirect Labor Time Per UnitTotal Cost of Direct Materials Purchases		enter an amount of pounds		enter an amount of pounds		enter an amount of pounds
select summarizing line for the second part Total Pounds Required for ProductionTotal Cost of Direct Materials PurchasesTotal Materials RequiredDirect Materials PurchasesTotal Direct Labor CostDirect Labor Cost Per HourDesired Ending InventoryTotal Required Direct Labor HoursBeginning Materials InventoryUnits to be ProducedDirect Materials Per UnitDirect Labor Time Per UnitCost Per Pound		enter a total amount of pounds for the second part		enter a total amount of pounds for the second part		enter a total amount of pounds for the second part
select a between addition and deduction AddLess: select an item Total Materials RequiredBeginning Materials InventoryDirect Labor Cost Per HourCost Per PoundDirect Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Direct Labor CostDirect Labor Time Per UnitDirect Materials Per UnitDesired Ending InventoryUnits to be ProducedTotal Required Direct Labor HoursTotal Pounds Required for Production		enter an amount of pounds		enter an amount of pounds		enter an amount of pounds
select a summarizing line for the third part Direct Labor Time Per UnitDirect Labor Cost Per HourTotal Pounds Required for ProductionTotal Cost of Direct Materials PurchasesCost Per PoundTotal Materials RequiredUnits to be ProducedDirect Materials Per UnitDesired Ending InventoryTotal Direct Labor CostBeginning Materials InventoryTotal Required Direct Labor HoursDirect Materials Purchases		enter a total amount of pounds for the third part		enter a total amount of pounds for the third part		enter a total amount of pounds for the third part
select an item Direct Labor Time Per UnitBeginning Materials InventoryTotal Direct Labor CostTotal Materials RequiredDirect Materials PurchasesDirect Labor Cost Per HourCost Per PoundDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Pounds Required for ProductionUnits to be ProducedTotal Required Direct Labor HoursDesired Ending Inventory		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select a closing direct material budget item Total Direct Labor CostTotal Pounds Required for ProductionDirect Materials Per UnitBeginning Materials InventoryDirect Materials PurchasesTotal Required Direct Labor HoursDirect Labor Cost Per HourTotal Cost of Direct Materials PurchasesDesired Ending InventoryUnits to be ProducedCost Per PoundDirect Labor Time Per UnitTotal Materials Required		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount