Acme Company’s budgeted production is 4,500 units in October, 5,250 units in November, and 6,000 units in December. Each unit of finished goods requires 2.0 pounds of raw materials that cost $3.00 per pound. Acme’s policy is to maintain an ending raw materials inventory balance equal to 20% of the amount needed for the next month’s production. Acme pays for 30% of its raw material purchases in the month of purchase and 70% in the month following the purchase. What is the balance of the accounts payable account for raw materials purchases at the end of November?
a) $9,720
b) $22,680
c) $25,920
d) $32,400