A manufacturing company's budgeted income statement includes the following data:Data extracted from budgeted income statementSales revenueCommission expense (10% of sale)Salaries expenseMiscellaneous expense-5% of salesRent expenseUtilities expenseInsurance expenseDepreciation expenseMar$120,00012,00033,0006,0003,9002,0002,7004,400OA. $53,900OB. $50,500OC. $45,400OD. $56,400Apr$80,0008,00033.0004,0003.9002,0002,7004,400May$130,00013,00033,0006.5003.9002,0002,7004,400Jun$110,00011,00033,0005,5003,9002,0002,7004,400The 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 theremaining 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?

Introduction:- Budgeting plays vital role in every organization. Cash budget means expected cash receipts and expected cash payment with opening and closing cash balances.Explanations:- Particulars Amount Commission expenses of April paid in may ($8,000*40%) $ 3,200 Commission expenses of May paid in May ($13,000*60%) $ 7,800 Salaries expenses of April paid in May (33000*50%) $ 16,500 Salaries expenses of May paid in May (33000*50%) $ 16,500 Miscellaneous expenses paid in May $ 6,500 Rent expense paid in May $ 3,900 Utilities expenses paid in May $ 2,000 Total cash payment for selling and administrative expenses $ 56,400Conclusion:- As per the above discussions option "D" is the correct answer, which satisfies the given requirement and remaining options do not satisfy the given requirement... I hope helpful to you… If you are satisfied... Support me... Thank you...

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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 incurs remaining 50% are paid one month later. Miscellaneous expenses, rent expense, and utilities expenses are assumed to be paid i the same month in which they are incurred. Insurance was prepaid for the year on. How much is the total of the budgeted cash payments for selling and administrative expenses for the month of May? OA. $53,900 OB. $50,500 OC. $45,400 OD. $56,400 I

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 incurs remaining 50% are paid one month later. Miscellaneous expenses, rent expense, and utilities expenses are assumed to be paid i the same month in which they are incurred. Insurance was prepaid for the year on. How much is the total of the budgeted cash payments for selling and administrative expenses for the month of May? OA. $53,900 OB. $50,500 OC. $45,400 OD. $56,400 I

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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