(Solved) A manufacturing company's budgeted income statement includes the following data:Data extracted from ...

A manufacturing company's budgeted income statement includes the following data:

Data extracted from budgeted income statement   Mar   Apr   May   Jun
Sales revenue   $120,000   $90,000   $130,000   $110,000
Commission expense (10% of sale)   12,000   9,000   13,000   11,000
Salaries expense   33,000   33,000   33,000   33,000
Miscellaneous expense - 5% of sales   6,000   4,500   6,500   5,500
Rent expense   3,700   3,700   3,700   3,700
Utilities expense   2,000   2,000   2,000   2,000
Insurance expense   2,900   2,900   2,900   2,900
Depreciation expense   4,500   4,500   4,500   4,500

The budget assumes that 60% of commission expenses are paid in the month they were incurred, and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the month incurred and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense, and utilities expenses are assumed to be paid in the same month in which they are incurred. Insurance was prepaid for the year on January 1. How much is the total of the budgeted cash payments for selling and administrative expenses for the month of May?
A) $45,200
B) $54,600
C) $50,900
D) $56,600

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.

A manufacturing company's budgeted income statement includes the following data:Data extracted from ...

Horngren's Financial & Managerial Accounting, The Financial Chapters

Related Topics