Calculate total budgeted cash payments for selling expenses

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Question - A manufacturing? company's budgeted income statement includes the following? data:

Data extracted from budgeted income statement

Mar

Apr

May

Jun

Sales revenue

$120,000

$80,000

$100,000

$100,000

Commission expense ?(15?% of? sales)

18,000

12,000

15,000

15,000

Salaries expense

32,000

32,000

32,000

32,000

Miscellaneous expense-5?% of sales

6,000

4,000

5,000

5,000

Rent expense

3,600

3,600

3,600

3,600

Utilities expense

2,100

2,100

2,100

2,100

Insurance expense

2,900

2,900

2,900

2,900

Depreciation expense

4,300

4,300

4,300

4,300

The budget assumes that 40?% of commission expenses are paid in the month they are incurred and the remaining 60?% are paid one month later. In? addition, 50?% of salaries expenses are paid in the same? month, and the remaining 50?% are paid one month later. Miscellaneous? expenses, rent? expense, and utilities expenses are assumed to be paid in the same month in which they are incurred. Insurance has been paid in advance for the year on January 1.

Calculate total budgeted cash payments for selling and administrative expenses for the month of April.

Reference no: EM133175954

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