Preparing a Selling and Administrative Expenses BudgetFazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,200,000. There is a 5%commission on sales. In addition, fixed expenses of the sales and administrative offices include the following:SalariesUtilitiesOffice space$960,000365,000230,000Advertising1,200,000Required:Prepare a selling and administrative expenses budget for Fazel Company for the coming year.

FAZEL COMPANYSelling and Administrative Expenses BudgetFor the Coming Year Variable selling…

Answered: Preparing a Selling and Administrative…

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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Preparing a Budgeted Income Statement Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $12 Variable selling and administrative expenses per unit $1.10 Fixed selling and administrative expenses $423,000 Tax rate 28 % Required: Prepare a budgeted income statement for Oliver Company for the coming year. Round all income statement amounts to the nearest dollar. Oliver Company Budgeted Income Statement For the Coming Year Sales v Cost of goods sold v Gross margin Less: Variable selling and administrative expenses Less: Fixed selling and administrative expenses Operating income Less: Income taxes Net income v 24
Zilly Company budgets sales of $156,000 for June. Zilly pays a sales manager a monthly salary of $5,300 and a commission of 8% of that month's sales dollars. Prepare a selling expense budget for June. Budgeted sales ZILLY COMPANY Selling Expense Budget June
Operating Budget, Comprehensive Analysis Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sales in units for the coming five months are given below. January 10,000 February 10,600 March 13,600 April 16,000 May 18,500 The following data pertain to production policies and manufacturing specifications followed by Ponderosa: Finished goods inventory on January 1 is 900 units. The desired ending inventory for each month is 20 percent of the next month’s sales. The data on materials used are as follows: Direct Material Per-Unit Usage Unit Cost Part #K298 2 $4 Part #C30 3 7 Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 30 percent of the next month’s production needs. This is exactly the amount of material on hand on…
a) $18,400 b) $101,600 c) $19,600 d) $16,800
Dolson Appliances makes coffee machines for offices and homes. For next year, the production budget is 141,000 units. Beginning inventories will be 18,000 units and the desired ending inventory will be 16,000 units. Required: What is the sales budget for the coming year for Dolson Appliances? Sales budget units
Production Budget and Purchase of Raw Materials. Brown Corporation's sales budget for the following year is as follows: Quarter 1 = 20,000 units %3D Quarter 2 = 25,000 units Quarter 3 = 22,000 units %3D Quarter 4 = 30,000 units Each unit of product requires 2 pounds of direct materials. The company's policy is that at the beginning of each quarter, product inventory is 15 percent of sales for the quarter and direct material inventory is equal to 25 percent of diréct material needs for production in that quarter. Required: Determine the production and purchase budget of raw materials for the second quarter!
Operating Budget, Comprehensive Analysis Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sales in units for the coming five months are given below. January 10,000 February 10,600 March 13,300 April 16,000 May 18,500 The following data pertain to production policies and manufacturing specifications followed by Ponderosa: Finished goods inventory on January 1 is 900 units. The desired ending inventory for each month is 20 percent of the next month’s sales. The data on materials used are as follows: Direct Material Per-Unit Usage Unit Cost Part #K298 2 $4 Part #C30 3 7 Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 30 percent of the next month’s production needs. This is exactly the amount of material on hand on…
Give answer as per required
Weller Company's budgeted unit sales for next year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 28,000 29,000 21,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $2.70. Fixed selling and administrative expenses include advertising expenses of $13,000 per quarter, executive salaries of $47,000 per quarter, and depreciation of $27,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $6,800 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for next year. Note: Round "Per Unit" answers to 2 decimal places. Variable selling and administrative expense per unit Variable selling and administrative expense Fixed selling and administrative expenses: 4th Quarter 26,000 Total fixed selling and administrative expenses Total selling and administrative expenses Weller Company…

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