Craig Manufacturing Company's budgeted income statement includes the following data: 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 salary expenses are paid in the month incurred 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 was prepaid for the year on January 1.
How much is the total of the budgeted cash payments for operating expenses for the month of May?

Question

Craig Manufacturing Company's budgeted income statement includes the following data:  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 salary expenses are paid in the month incurred 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 was prepaid for the year on January 1.
How much is the total of the budgeted cash payments for operating expenses for the month of May?

Quizplus · Accepted Answer

The Answer of Craig Manufacturing Company's budgeted income statement includes the following data:  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 salary expenses are paid in the month incurred 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 was prepaid for the year on January 1.
How much is the total of the budgeted cash payments for operating expenses for the month of May?

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