Question

The following details have been extracted from ten budget of a merchandising company. Rent expense :...

The following details have been extracted from ten budget of a merchandising company.

Rent expense : $8,700 per month
Depreciation expense: $ 4,000 per month
Insurance expense: $1,250 per month
Miscellaneous expense: 4% of sales, paid as incurred
Commission expense: 10% of sales
Salaries expense: $6000 per month

Sales: dec $70,000 Jan $75,000 feb $90,000 mar $105000


Commissions and salaries expenses are paid 50% in month to which they are incurred and the balance next month. Rent and miscellaneous expenses are paid as and when they occur. Insurance is prepaid at the beginning of yen quarter. Calculate cash payments for the selling and administrative expenses for the first quarter of the next year.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following details have been extracted from the budget of a merchandising company. Rent Expense ?$8,400...
The following details have been extracted from the budget of a merchandising company. Rent Expense ?$8,400 per month Depreciation Expense ?$3,500 per month Insurance Expense ?$2,000 per month Miscellaneous Expense ?2% of? sales, paid as incurred Commissions Expense ?8% of sales Salaries Expense ?$6,000 per month Dec Jan Feb March Sales? $55,000 ?$60,000 ?$75,000 ?$90,000 Commissions and salaries expenses are paid? 50% in the month to which they are incurred and the balance in the next month. Rent and miscellaneous...
Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible An accounting device used to plan and control resources of operational departments and divisions.budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 15% of sales Miscellaneous administrative expense $10,000 per month plus 4% of sales Office salaries expense $50,000 per month Customer support expenses $20,000 per month plus 30% of sales Research and development expense $75,000 per month...
​Camellia, a merchandising​ company, has provided the following extracts from their budget for the first quarter...
​Camellia, a merchandising​ company, has provided the following extracts from their budget for the first quarter of the forthcoming​ year: Jan Feb March Sales ​(2020​% ​cash) $ 400 comma 000.00$400,000.00 $ 600 comma 000.00$600,000.00 $ 900 comma 000.00$900,000.00 The company collects 6060​% of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February. A. $ 536 comma 000.00$536,000.00 B. $ 408 comma 000.00$408,000.00 C. $ 416...
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget....
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available. 1. Sales: 20,200 units quarter 1; 22,100 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,100, office salaries $6,470, depreciation $4,580, insurance $1,880, utilities $870, and repairs expense $630. 4. Unit selling price: $24....
The following data have been taken from the budget reports of Kenyon Company, a merchandising company....
The following data have been taken from the budget reports of Kenyon Company, a merchandising company. Purchases Sales January $ 190,000 $ 130,000 February $ 190,000 $ 230,000 March $ 190,000 $ 270,000 April $ 170,000 $ 330,000 May $ 170,000 $ 290,000 June $ 150,000 $ 270,000 Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Purchases for the previous November and...
The budget director for Vernon Cleaning Services prepared the following list of expected selling and administrative...
The budget director for Vernon Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Required Complete the schedule of cash payments...
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget....
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available. 1. Sales: 21,000 units quarter 1; 22,200 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,400, office salaries $6,100, depreciation $4,770, insurance $1,920, utilities $830, and repairs expense $620. 4. Unit selling price: $22....
Developing a Master Budget for a Merchandising Organization Assume Nordstrom prepares budgets quarterly. The following information...
Developing a Master Budget for a Merchandising Organization Assume Nordstrom prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for one of its stores (in thousands). NORDSTROM Balance Sheet March 31 Assets Liabilities and Stockholders' Equity Cash $ 2,525 Merchandise purchases payable $2,400 Accounts receivable 2,040 Dividends payable 710 Inventory 3,400 Stockholders' equity 8,005 Prepaid Insurance 150 Fixtures 3,000 Total assets $11,115 Total liabilities and equity $11,115 Actual and forecasted sales for selected...
A company is formulating its marketing expense budget for the last quarter of the year. Sales...
A company is formulating its marketing expense budget for the last quarter of the year. Sales in units for the third quarter amounted to 3,400; sales volume for the fourth quarter is expected to increase by 10%. Variable marketing expense per unit sold amount to approximately $0.15, paid in cash in month of sale. Fixed marketing expense per month amount to $8,500 of salaries, $3,750 of depreciation (delivery trucks), and $1,700 of insurance (paid monthly). a. What is the total...
A company is formulating its marketing expense budget for the last quarter of the year. Sales...
A company is formulating its marketing expense budget for the last quarter of the year. Sales in units for the third quarter amounted to 3,600; sales volume for the fourth quarter is expected to increase by 10%. Variable marketing expense per unit sold amount to approximately $0.20, paid in cash in month of sale. Fixed marketing expense per month amount to $9,000 of salaries, $4,000 of depreciation (delivery trucks), and $1,800 of insurance (paid monthly). a. What is the total...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT