Question

AutoSave 0 H e Home ndias_module_02092020.x - Excel Insert Page Layout Formulas Calibri Data Review Views B I 11 H. J • - A A • - A) 19 C ard 2 Wrap Text Mergea Cente Font E22 Alignment 7% of sales 18% of sales 2 Sales Commissions CADE 3 Advertising Expense 4 Misc. selling expense 5 Office salaries expense $1,750 plus 4% of sales 6 office supplies expense $12,000 per month 5% of sales 7 Misc administrative expense $1,400 per month plus 2% of sales 9 Requirement: Prepare the selling and admin budget for Coopie Awards Coopie Awards 11 Selling and Administrative Budget For the current Year 13 Selling Expenses: 14 Sales commissions 7% 15 Advertising expenses 16 Miscellaneous selling expenses 1820 17 Total selling expenses $1,820 18 Administrative expenses: 19 Office salaries $ 144,000 20 Office supplies 78,750 21 Miscellaneous administrative expenses 48300 221 Total administrative expenses 271,050 23 Total selling and administrative expenses $272,870 Cost of Goods Sold Budget Selling and Admin Budget income Statement 18% Ready EL

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Answer 1

Coopie Awards

Selling and administrative budget

For the current year ended

Particulars	$	$
Selling expenses
Sales commission	110,250
Advertising expenses	283,500
Miscellaneous selling expenses	64,750
		$ 458,500
Administrative expenses
Office salaries	144,000
Office supplies	78,750
Miscellaneous administrative expenses	48,300
		$ 271,050
Total selling and administration overhead		$ 729,550

Budgeted income statement

For the current year ended

Particulars	$
Sales revenue	1,575,000
Less: cost of goods sold	1,386,680
Gross profit	188,320
Less: selling and administration expenses	729,550
Income from operations	( $ 541,230)
Less: income tax (40%)	($ 216,492)
Net income	( $ 324,738)