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 $65. Budgeted unit sales for June, July, August, and September are 8,200, 12,000, 14,000, and 15,000 units, respectively. All sales are on credit.
(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.
(e) Twenty-percent of raw materials purchases are paid for in the month of purchase and 80% in the following month.
(f)The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours.
(g)The variable selling and administrative expense per unit sold is $1.30. The fixed selling and administrative expense per month is $62,000.What is the estimated accounts payable balance at the end of July?