Poriss Corporation makes and sells a single product called a Yute.The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year.The following budget data are available: All of these expenses (except depreciation)are paid in cash in the month they are incurred. If the company has budgeted to sell 16, 000 Yutes in December, then the budgeted total cash disbursements for selling and administrative expenses for December would be:

Question

Poriss Corporation makes and sells a single product called a Yute.The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year.The following budget data are available:  All of these expenses (except depreciation)are paid in cash in the month they are incurred. If the company has budgeted to sell 16, 000 Yutes in December, then the budgeted total cash disbursements for selling and administrative expenses for December would be:

Quizplus · Accepted Answer

To find the total cash disbursements for selling and administrative expenses for December, we need to total up the budgeted expenses for each category and then multiply by the expected sales for December.

So, the total cash disbursements for selling and administrative expenses in December would be:

Advertising expenses = $40,000
Office salaries expenses = $80,000
Utilities expenses = $24,000
Depreciation expenses = $66,000
Insurance expenses = $20,000
Miscellaneous expenses = $40,000

Total expenses = $270,000

Multiplying this by the expected sales of 16,000 Yutes, we get:

Total cash disbursements = $270,000 x 16,000 = $4,320,000

Therefore, the correct answer is B) $494,000.

Poriss Corporation Makes and Sells a Single Product Called a Yute.The