1. Lauren Inc. has prepared the operating budget for the first quarter of 2015. They forecast sales of $100,000 in October, $120,000 in November, and $140,000 in December. Variable and fixed expenses are as follows:

Variable: Power cost (50% of Sales)

Miscellaneous expenses: (5% of Sales)

Fixed: Salary expense: $10,000 per month

Rent expense: $10,000 per month

Depreciation expense: $1,200 per month

Power cost/fixed portion: $800 per month

Miscellaneous expenses/fixed portion: $2,000 per month

Calculate total selling and administrative expenses for the month of October. ?

2. Erin Inc. has prepared the following purchases budget:

Month	Budgeted Purchases
June	$70,000
July	72,500
August	86,300
September	93,700
October	69,200

All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate budgeted balance of accounts payable at the end of October.