Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 27,000 28,000 20,000 25,000 Budgeted unit Sales The company's variable selling and administrative expense per unit is $2.60. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $47.000 per quarter, and depreciation of $26.000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5.000 in the third quarter. Finally, property taxes of $8.800 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.) Weller Company Selling and Administrative Expense Budget Quarter 1st and Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable selling and administrative expense per unit Variable selling and administrative expense Fixed selling and administrative expenses: Total fixed selling and administrative expenses Total selling and administrative expenses Cash disbursements for selling and administrative expenses

Answer 1

Weller company Selling and Administrative Expense Budget Quarter 3 Quarter 1 Quarter 2 Quarter 4 Year Budgeted units sales Variable Selling and administrative expense per unit Variable expense Fixed selling and administrative expenses: Advertising Executive salaries 20000 27000 28000 25000 100000 2.60 2.60 2.60 2.60 2.60 52000 (A) 70200 72800 65000 260000 12000 12000 12000 12000 48000 47000 47000 47000 47000 188000 5000 5000 Insurance 10000 Property taxes Depreciation Total Fixed expenses Total selling and administrative expenses Less: Depreciation Cash disbursements for selling and administrative expenses 8800 8800 26000 26000 26000 26000 104000 358800 (B) 90000 93800 90000 85000 (A+ B) 166600 150000 160200 142000 618800 26000 26000 104000 26000 26000 134200 140600 116000 124000 514800

GARDEN Depot Cash Budget 1 Quarter 2 Quarter 3 Quarter 4Quarter Year Beginning cash balance Total Cash receipts Total cash available Less: Total cash disbursements Excess of cash available over disbursements Financing: Borrowing Repayment Interest 65260 45000 10000 91260 45000 280000 350000 1360000 400000 330000 325000 410000 395260 441260 1405000 314000 344000 304000 324000 1286000 -19000 96000 91260 117260 119000 29000 29000 -29000 -29000 -1740 -1740 Total financing Ending cash balance 29000 -1740 -30740 10000 65260 91260 117260 117260 Interest 29000 3% *2 = 1740