Glass CC is a supplier of glass containers and has the following sales budget fo
ID: 2521573 • Letter: G
Question
Glass CC is a supplier of glass containers and has the following sales budget for the coming year: Month Sales Value (Rands) January 300 000 February 315 000 March 345 000 April 367 500 The sales price per unit is R15; the cost of sales is 60% of sales. Glass CC keeps inventory equal to the coming month's budgeted sales requirements. It pays for purchases 55% in the month of purchase and 45% in the month after purchase. Inventory at the beginning of January is R172,800. Accounts Payable on 1 January is R83,000. Required a. Prepare a purchases budget, in units and in rands, for the first three months of the year (8) b. Prepare a schedule of cash disbursements on account for the first three months of the year. (6) c. Determine the accounts payable balance as of 31 March. (2) Glass CC is a supplier of glass containers and has the following sales budget for the coming year:Month Sales Value (Rands) January 300 000 February 315 000 March 345 000 April 367 500 The sales price per unit is R15; the cost of sales is 60% of sales.
Explanation / Answer
Selling Price = 15 per unit
Purchase Price = 9 (60% of 15) per unit
Cash Disbursement:
Account Payable Balance as of 31st March = 45% of March Purchase = 45% of 220,500 = 99,225
January Feb March April Sales 3,00,000 3,15,000 3,45,000 3,67,500 Cost of Sales (60% of Sales) 1,80,000 1,89,000 2,07,000 2,20,500 Closing Inventory(Cost of Sales of Next Month) 1,89,000 2,07,000 2,20,500 Data not available Opening Inventory 1,72,800 1,89,000 2,07,000 2,20,500 Purchase
(Cost of Sales+Closing Inventory-Opening Inventory) 1,96,200 2,07,000 2,20,500 Data not available Purchase (Units) @ Rand 9 per unit 21,800 23,000 24,500
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