A manufacturing company's budgeted income statement includes the following data: 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 salary expenses are paid in the same month and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense and utility 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^st. Calculate total budgeted cash payments for selling and administrative expenses for the month of April.

Question

Quizplus · Accepted Answer

The Answer of A manufacturing company's budgeted income statement includes the following data: 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 salary expenses are paid in the same month and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense and utility 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^st. Calculate total budgeted cash payments for selling and administrative expenses for the month of April.

A Manufacturing Company's Budgeted Income Statement Includes the Following Data