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AMZ Corporation produces a single product that requires three yards of direct materials to produce each unit. AMZ has the following budgeted information related to
AMZ Corporation produces a single product that requires three yards of direct materials to produce each unit. AMZ has the following budgeted information related to this product for the next five months: August September October November December units to be produced 37,100 ? 33,000 28,800 28,700 cost of direct materials to be purchased $385,020 $464,430 $444,600 ? ? AMZ wants to maintain monthly ending inventories of direct materials equal to 80% of the next month's production needs. The cost of direct materials is $5 per yard. Assume AMZ Corp. pays for 60% of a month's purchases of direct materials in the month of purchase and the other 40% is paid in the following month. Calculate AMZ Corporation's budgeted accounts payable balance at November 30
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