Refer to Question 3-24. Jaime’s Hat Shop expects to incur the following expenses for each month of the second quarter of this financial year:

In April, Jaime’s had prepaid the rent for the whole year. Jaime’s plans to pay for all the other expenses in the month they occur.
Required:
a Prepare a selling expenses budget for the second quarter of this financial year.
b Prepare a general and administrative expenses budget for the second quarter of this financial year.

Question 3-24

Jaime’s Hat Shop sells hats with school logos on them for $22 each. This year, Jaime’s expects to sell 350 hats in August, 300 in September, 400 in October, 800 in November, 1040 in December and 750 in January. On average, 25 per cent of customers purchase on credit. Jaime’s allows those customers to pay for their purchases the month after they have made their purchases.

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Rent (30% general and administrative, 70% selling) Utilities (30% general and administrative, 70% selling) Advertising Salaries (50% general and administrative, 50% selling) Commissions (for each hat sold) $1 200 600 400 5000 2