1. The following budget information is available for the HD Sales Company (HDC) for January: Sales: $320,000 Freight out: $.25 per unit sold Depreciation on Admin. Equipment: $10,000 Sales & Admin. Salaries: $40,000 + 2% of sales Advertising: $12,000 Depreciation on Manuf. Equip.: $15,000 Lease on Sales Building: $45,000 Miscellaneous Selling Expenses: $5,000 All operating expenses are paid in cash in the month incurred. If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. The following budget information is available for the HD Sales Company (HDC) for January:
Sales: $320,000
Freight out: $.25 per unit sold
Depreciation on Admin. Equipment: $10,000
Sales & Admin. Salaries: $40,000 + 2% of sales
Advertising: $12,000
Depreciation on Manuf. Equip.: $15,000
Lease on Sales Building: $45,000
Miscellaneous Selling Expenses: $5,000
All operating expenses are paid in cash in the month incurred. If HDC expects to sell 20,000 units
of inventory, the total budgeted selling and administrative expenses would be what amount on
the January pro forma income statement?
2. $123,400
Transcribed Image Text:1. The following budget information is available for the HD Sales Company (HDC) for January: Sales: $320,000 Freight out: $.25 per unit sold Depreciation on Admin. Equipment: $10,000 Sales & Admin. Salaries: $40,000 + 2% of sales Advertising: $12,000 Depreciation on Manuf. Equip.: $15,000 Lease on Sales Building: $45,000 Miscellaneous Selling Expenses: $5,000 All operating expenses are paid in cash in the month incurred. If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement? 2. $123,400
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