3. Actual/projected sales (in dollars) are: March $472000, April $484000, May $476000, June $456,000, and July $480000.

Actual/projected purchases (in units) are: March 12175, April 11850, May 11275, June 12150, and July 12250.

The cost of each unit of inventory is $25. Selling, general, and administrative expenses, of which $3,000 is depreciation, are equal to 15% of the current month's sales. 60% of all purchases of merchandise and 100% of the selling, general, and administrative expenses are paid in the month purchased and the remainder in the following month. What are the AP balance as of June 30? June?

Select one:

a. $121,500

b. $305,250

c. $427,750

d. None of the above