7.5

Orr Company makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next three months is as follows: Budgeted Biks to be Produced February 15,500 units March 14,000 units April 11,000 units The company wants to maintain monthly ending inventories of Material A that are equal to 20% of the following month's production needs. The cost of Material A is $0.60 per yard. It is expected that 12,500 units will be produced in May. The company is in the process of preparing a direct materials purchases budget. 

Assume Orr Company pays for 40% of a month's purchase of direct materials in the month of purchase and the other 60% is paid in the following month. Calculate the amount of budgeted accounts payable at April 30. Do not use decimals in your answer.