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A company has forecasted the following sales for 1st seven months of year 2020. Month RM January 10,000 February 12,000 March 14,000 April 20,000 May
A company has forecasted the following sales for 1st seven months of year 2020. Month RM January 10,000 February 12,000 March 14,000 April 20,000 May 10,000 June 16,000 July 18,000 Purchases of raw materials made up 30% of the forecasted sales for the next month. of the total purchases, 40% is paid in the month purchase is made and 60% in the following month. Other cash payments made are: i) Labour cost equals RM4,000 per month. ii) Fixed overhead is RM2,000 per month. ii) Interest payments are paid in the months of March and June and amounted to RM3,000 iv) A sales commission of 1.5% on total sales is paid in June. Required: a) Prepare a monthly cash payment for the six months from January until June
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