SALES PROJECTIONS

Wilson Sports basketball sales in August were 150,000 units. Sales are expected to grow by 2% in September. October sales are expected to be 1,000 units less than in September. November sales will be 3% more than October. The selling price of the basketballs will remain the same $30 per unit. December sales projection is 157,000 units.

INVENTORY POLICIES

FINISHED GOODS

MAINTAIN AND ENDING INVENTORY EQUAL TO 25% OF NEXT MONTH SALES

ACTUAL BEGINNING INVENTORY 38,500 UNITS

DIRECT MATERIALS

MAINTAIN AND ENDING INVENTORY EQUAL TO 30% OF NEXT MONTH PRODUCTION

ACTUAL BEGINNING INVENTORY 9,000 POUNDS

The cost of materials purchased in August were $210,000

REQUIREMENTS

Each basketball requires .25 pounds of materials at a cost of $7 per pound. December production are projected to be 156,000 units.

90% of direct materials purchased are paid in cash and the remaining 10% are paid in the next month.

CALCULATE THE BUDGETED ACCOUNTS PAYABLE FOR THE BALANCE SHEET

ROUND YOUR ANSWER TO ZERO DECIMAL PLACES