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A manufacturing company's budgeted income statement includes the following data: Data extracted from budgeted income statement Sales revenue Commission expense (20% of sales) Salaries expense MiscellanOQU ONDORE Mar $130,000 26,000 32,000 Apr $90,000 May $95,000 18,000 19,000 32,000 32,000 Jun $95,000 19,000 32,000

A manufacturing company's budgeted income statement includes the following data: Data extracted from budgeted income statement Sales revenue Commission expense (20% of sales) Salaries expense MiscellanOQU ONDORE Mar $130,000 26,000 32,000 Apr $90,000 May $95,000 18,000 19,000 32,000 32,000 Jun $95,000 19,000 32,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A manufacturing company's budgeted income statement includes the following data: Data extracted from budgeted income statement Sales revenue Commission expense (20% of sales) Salaries expense Miscellaneous expense 4% of sales Rent expense Utilities expense Insurance expense Depreciation expense Mar $130,000 A. $56,800 OB. $65,800 OC. $63,100 D. $70,000 26,000 32,000 5,200 4,000 2,300 2,700 4,200 Apr $90,000 18,000 32,000 3,600 4,000 2,300 2,700 4,200 May $95,000 19,000 32,000 3,800 4,000 2,300 2,700 4,200 Jun $95,000 19,000 32,000 3,800 4,000 2,300 2,700 4,200 The budget assumes that 60% of commission expenses are paid in the month they are incurred and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the same month, 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 has been paid in advance for the year on January 1. Calculate total budgeted cash payments for selling and administrative expenses for the month of April.
Transcribed Image Text:A manufacturing company's budgeted income statement includes the following data: Data extracted from budgeted income statement Sales revenue Commission expense (20% of sales) Salaries expense Miscellaneous expense 4% of sales Rent expense Utilities expense Insurance expense Depreciation expense Mar $130,000 A. $56,800 OB. $65,800 OC. $63,100 D. $70,000 26,000 32,000 5,200 4,000 2,300 2,700 4,200 Apr $90,000 18,000 32,000 3,600 4,000 2,300 2,700 4,200 May $95,000 19,000 32,000 3,800 4,000 2,300 2,700 4,200 Jun $95,000 19,000 32,000 3,800 4,000 2,300 2,700 4,200 The budget assumes that 60% of commission expenses are paid in the month they are incurred and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the same month, 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 has been paid in advance for the year on January 1. Calculate total budgeted cash payments for selling and administrative expenses for the month of April.
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