Question

Sullivan, Inc., sells tire rims. Its sales budget and inventory, purchases, and cost of goods sold budget for the nine months ended September 30, 2016, follow: (Click the icon to view the sales budget and inventory, purchases, and cost of goods sold budget.) Sullivan's selling and administrative expenses include the following 囲(Click the icon to view the expenses.) Prepare a selling and administrative expense budget for each of the three quarters of 2016 and totals for the nine-month period Sullivan, Inc Selling and Administrative Expense Budget Nine Months Ended September 30, 2016 Quarter Ended March 31 Data Table Quarter Ended June 30 September 30 Quarter Ended Nine-month Rent, $1,500 per month Salaries, $5,000 per month Commissions, 4% of sales Depreciation, $1,100 per month Miscellaneous expenses, 3% of sales Total Variable expenses Total variable expenses Fixed expenses Print Done

Answer 1

Qtr ended Mar 31 Qtr ended Jun 30 Qtr ended Sep 30 9 month total Variable exp: Commissions 5,200 3,900 9,100 7200 5400 12,600 6200 4650 10,850 18,600 13,950 32,550 Miscell exp Total var expenses Fixed expenses Rent Salaries Depreciation 4,500 15,000 3,300 22,800 31,900 4,500 15,000 3,300 22,800 35,400 4,500 15,000 3,300 22,800 33,650 13,500 45,000 58,500 117,000 149,550 Total fixed expenses Total sell & admin exp Qtr ended Mar 31 Qtr ended Jun 30 Qtr ended Sep 30 9 month total 2 Variable exp: 3 Commissions 4 Miscell exp 5 Total var expenses |-4%"180000 |-496"155000 -4%*130000 -3%* 130000 3%"180000 C3+C4 396"155000 -D3 D4 |:SUM(B3:D3) |:SUM(B4:D4) -E3+E4 B3+B4 a6 Fixed expenses: 1500*3 5000* 3 1100*3 1500*3 5000* 3 -1100*3 SUM(B7:D7) SUM(B8:D8) -E7+E8 7 Rent -15003 5000*3 11003 Salaries 9 Depreciation 10 Total fixed expenses SUM(B7:B9) SUM(C7:C9) C5+C10 SUM(0709) -D5+D10 11 Total sell & admin exp B5+B10 E5+E1O