Problem:
John Nguyen a retailer of Super Shoes has produced the following data:
Budgeted sales for $
January 2009 50,000
February 2009 45,000
March 2009 60,000
April 2009 70,000
- Shoes cost $3 a pair and are sold for $6 a pair
- Closing stock at 31/12/2008 was $12500
- Accounts Payable ( for purchase) at 31/12/2008 was $14,250
- Management now requires closing stock to be equal to 25% of the next month's sales (as from January 2009)
Required:
(a) Cost of goods sold budget for January to March 2009
(b) If purchases of stock are paid for 60% in the next month of purchase and 40% in the following month. How much did John pay the accounts payable in:
(1) January 2009
(2) February 2009
(3) March 2009