Waterways Corporation is preparing its budget for the coming year, $2025.$ 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.

Waterways likes to keep $10\%$ of the next month's 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 $31,2024,$ totaled $$183,600.$

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 $31,2024$

totaled $11,380$ 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 $31,2024,$ totaled $$120,595.$

Direct Labor

Labor requires $12$ minutes per unit for completion and is paid at a rate of $$9$ per hour.