Question 28 Digital Whizz manufactures and sells only one product. The company is in the process of preparing its Selling and Administrative Expense Budget for the year. The following budget data is available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions Licensing Advertising Executive salaries Depreciation on computers $2.00 $0.80 $1.60 $20,000 $80,000 $40,000 All expenses other than depreciation are paid in cash in the month they are incurred. The company has budgeted to sell 80,000 units in April. 1. Prepare the company's Selling and Admin budget for the year in proper form. Show your work. 2. What amount would carry through to the CASH BUDGET ?
Question 28 Digital Whizz manufactures and sells only one product. The company is in the process of preparing its Selling and Administrative Expense Budget for the year. The following budget data is available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions Licensing Advertising Executive salaries Depreciation on computers $2.00 $0.80 $1.60 $20,000 $80,000 $40,000 All expenses other than depreciation are paid in cash in the month they are incurred. The company has budgeted to sell 80,000 units in April. 1. Prepare the company's Selling and Admin budget for the year in proper form. Show your work. 2. What amount would carry through to the CASH BUDGET ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question 28
Digital Whizz manufactures and sells only one product. The company is in the process of preparing its Selling and Administrative
Expense Budget for the year. The following budget data is available:
Variable Cost
Per
Unit Sold
$2.00
$0.80
$1.60
Monthly Fixed
Cost
Sales commissions
Licensing
Advertising
Executive salaries
Depreciation on computers
$20,000
$80,000
$40,000
All expenses other than depreciation are paid in cash in the month they are incurred.
The company has budgeted to sell 80,000 units in April.
1. Prepare the company's Selling and Admin budget for the year in proper form. Show your work.
2. What amount would carry through to the CASH BUDGET ?
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