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Tremont, Inc., sells tire rims. Its sales budget and inventory, purchases, and cost of goods sold budget for the nine months ended September 30, 2018,
Tremont, Inc., sells tire rims. Its sales budget and inventory, purchases, and cost of goods sold budget for the nine months ended September 30, 2018, follow:
Tremont's selling and administrative expenses include the following: Prepare a selling and administrative expense budget for each of the three quarters of 2018 and totals for the nine-month period.
Tremont, Inc. Selling and Administrative Expense Budget Nine Months Ended September 30, 2018 Quarter Ended March 31 Quarter Ended June 30 Quarter Ended September 30 Nine-month Total Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses Total selling and administrative expenses Tremont, Inc. Sales Budget Nine Months Ended September 30, 2018 Quarter Ended Nine-Month March 31 June 30 September 30 Total Cash sales, 30% Credit sales, 70% Total sales 45,000 S 105,000 150,000 S S 37,500S 52,500S 135,000 315,000 450,000 87,500 122,500 S 125,000 175,000S Tremont, Inc. Inventory, Purchases, and Cost of Goods Sold Budget Nine Months Ended September 30, 2018 Quarter EndedQuarter Ended Quarter Ended Nine-Month March 31 June 30 September 30 Total $180,000 Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases $50,000 $21,000 $71,000 $17,000 $54,000 $70,000 $20,000 $90,000 $21,000 $69,000 $60,000 $23,000 $83,000 $20,000 $63,000 Data Table 1 Rent, $2,500 per month Salaries, $2,000 per month Commissions, 2% of sales Depreciation, $1,700 per month Miscellaneous expenses, 1% of sales Print Done
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