Preparing an operating budget-selling and administrative expense budget Consider the sales budget presented in Exercise E22-31. Slate's selling and administrative expenses include the following: Rent, $2,000 per month Salaries, $4,000 per month Commissions, 5% of sales Depreciation, $1,000 per month Miscellaneous expenses, 2% of sales Prepare a selling and administrative expense budget for each of the three quarters of 2018 and totals for the nine-month period. olate, Inc. Sales Budget Nine Months Ended September 30, 2018 Quarter Ended Nine-Month March 31 June 30 September 30 Total $ 28,000 $ 38,000 $ 33,000$ 99,000 112,000 152,000 132,000 396,000 140,000 $ 190,000 $ 165,000 $ 495,000 Cash sales, 20% Credit sales, 80% Total sales Slate, Inc. Inventory, Purchases, and cost of Goods Sold Budget Nine Months Ended September 30, 2018 Quarter Ended Quarter Ended Quarter Ended March 31 June 30 September 30 Nine-Month Total $198.000 Cost of goods sold $56,000 $12,600 $76,000 $11,600 $66,000 $14,600 Plus Desired ending merchandise inventory Total merchandise inventory required Loss Beginning merchandise inventory $68,600 $38,000 $30,600 $87,600 $12,600 $75,000 $80,600 $11.600 $69,000 Budgeted purchases