Item$8$

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Victoria Inc. makes one product and it provided the following information to help prepare the master budget for its first four months of operations:

The budgeted selling price per unit is $$80.$ Budgeted unit sales for June, July, August, and September are $9,500,10,500,12,500,$ and $15,500$ units, respectively. All sales are on credit.

$60\%$ of credit sales are collected in the month of the sale and $40\%$ in the following month.

The ending finished goods inventory equals $20\%$ of the following month$$s unit sales.

The ending raw materials inventory equals $10\%$ of the following month$$s raw materials production needs. Each unit of finished goods requires $5$ kg of raw materials. The raw materials cost $$2\mathrm{.}00$ per kilogram.

$30\%$ of raw materials purchases are paid for in the month of purchase and $70\%$ in the following month.

The direct labour wage rate is $$20$ per hour. Each unit of finished goods requires two direct labour$-$hours.

The variable selling and administrative expense per unit sold is $$2\mathrm{.}00.$ The fixed selling and administrative expense per month is $$62,500.$

Required:

If $62,000$ kg of raw materials are needed for production in August, what is the estimated accounts payable balance at the end of July?