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    Super Shoes: prepare a cost of goods sold budget

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    Question 4

    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

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    https://brainmass.com/business/budgets/super-shoes-prepare-cost-goods-sold-budget-198272

    Solution Preview

    Please see the attached file.

    Budgeted Sales
    Jan-09 $50,000.00
    Feb-09 $45,000.00
    Mar-09 $60,000.00
    Apr-09 $70,000.00

    Cost per pair $3.00
    Selling Price per pair $6.00

    Closing ...

    Solution Summary

    The following posting helps with problems involving cost of goods sold and accounts payable.

    $2.19

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