Instructions

Balances at $31$ January $2009$:

Debtors control account.............................$$32,400$

Creditors control account...........................$$25,200$

Inventory...................................................$$30,000$

Balances at $28$ February $2009$:

Debtors control account.............................$$24,000$

Creditors control account...........................$$29,160$

Inventory...................................................$$36,000$

Extract from cash payments journal at $28$ February $2009$:

Payments to creditors.................................$$41,040$

Additional Information:

a$)$ Gross profit mark$-$up is $20\%$ on cost

b$)$ Inventory is kept on the perpetual system

c$)$ All purchases and $80\%$ of sales are on credit

 

 

Required:

a$)$ Calculate purchases.

b$)$ If purchases during February were $$39,000$ what is the Cost of Goods Sold for February?

Answer rating: 100% (QA)

To calculate the purchases we need to determine the change in the inventory balance from Ja... View the full answer