Reference no: EM132547379

                                    January               February                 March                         April

Sales                             $26,400                   $23,100              $33,000               $25,000

Production in units                990                     1,440                 1,710                         1,200

Sales are 30% cash and 70% on account, and 60% of credit sales are collected in the month of the sale. In the month after the sale, 30% of credit sales are collected. The remainder is collected two months after the sale. It takes 4 kilograms of direct material to produce a finished unit, and direct materials cost $5 per kilogram. All direct materials purchases are on account, and are paid as follows: 40% in the month of the purchase, 50% the following month, and 10% in the second month following the purchase. Ending direct materials inventory for each month is 40% of the next month's production needs. January's beginning materials inventory is 1,080 kilograms. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.

Question 1: The ending balance in accounts payable for March is:

Group of answer choices

Option a: $65,832

Option b: $21,168

Option c: $18,072

Option d: $30,120