Kothari Corp. produces and sells an indescribable product. For the third quarter of 2015, the firm's expected sales of its indescribable product are as follows: July August September Sales (units) 2,400 2,500 2,600 The selling price is $18 per unit. All sales are on credit, with a 4% discount available to customers who pay their accounts by the end of the month in which the sale occurred. On average, 75% of customers pay their accounts within the discount period, 3% never pay, and the others pay during the month following the month of sale. The rm's policy is to maintain an inventory of finished goods at the beginning of each month equal to 25% of the anticipated sales for that month. Each finished product requires 4 kilograms of direct materials, which are purchased at a cost of $2.50 per kilogram. Forty percent of these purchases are paid for in cash; 60% are on account, with the cash paid in the following month. Purchases in July are budgeted to be $24,000. The firm's monthly desired ending materials inventory is 1,680 kilograms, which is the amount of direct materials expected to be on hand on July 1. Direct labour costs are budgeted to be $7,000 per month during the third quarter. Overhead is expected to be $10,000 per month, including $2,000 of amortization. Cash payments for direct labour and overhead occur in the month as the expenses are incurred. Selling and administrative (S&A) expenses for a quarter are paid in cash in the first month of the quarter. S&A expensw in the third quarter are budgeted to be $12,500. On August 1, 2015, the cash account balance is forecasted to be $2,100