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 were incurred,and the remaining 40% are paid one month later.In addition,50% of salaries expenses are paid in the month incurred and the remaining 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?

Question

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 were incurred,and the remaining 40% are paid one month later.In addition,50% of salaries expenses are paid in the month incurred and the remaining 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?

Quizplus · Accepted Answer

B)Payment for selling and administrative expenses for the month of May:
Commission expense (15% of sales):
 11ea8a42_4fa2_1c1b_8b44_5dacf532a4fb_TB5024_00 Salaries expense:
 11ea8a42_4fa2_1c1c_8b44_d9680f85d58a_TB5024_00

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