Question
E22A-34 Preparing an operating budget- selling and adminisrative expense budget Quarter Ended E22A-33 March 31 June 30 September 30 Nine-Month Total Cash sales, 20% $20,000
E22A-34 Preparing an operating budget- selling and adminisrative expense budget
| Quarter Ended | E22A-33 | |||
|---|---|---|---|---|
| March 31 | June 30 | September 30 | Nine-Month Total | |
| Cash sales, 20% | $20,000 | $30,000 | $25,000 | $75,000 |
| Credit sales, 80% | $80,000 | $120,000 | $100,000 | $300,000 |
| Total Sales | $100,000 | $150,000 | $125,000 | $375,000 |
Consider the sales budget presented in Exercise E22A-33 (from the table above). Stewart's sellings and administrative expenses included the following: Rent, $1,100 per month; Saleries, $2,000 per month; Commissions, 4% of sales; Depreciation, $1,800 per month; Miscellaneous expenses, 3% of sales.
Prepare a selling and administrative expense budget for each of the three quarters of 2016 and totals for the nine- month period.
Please show the step by step process. Thank you!
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Documentation Improvement Methods The New Accounting Manual
Authors: Athar Murtuza
2nd Edition
0471379387, 978-0471379386
