Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
| (a) |
The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit.
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| (b) |
Forty-percent of credit sales are collected in the month of the sale and 60% in the following month. |
| (c) |
The ending finished goods inventory equals 20% of the following month's unit sales. |
| (d) |
The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.
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| (e) |
Thirty-percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. |
| (f) |
The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
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| (g) |
The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $60,000.
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| What is the estimated accounts payable balance at the end of July? |