Question

a. jo Sales in April are expected to be $180,000. Vinning forecasts that monthly sales will increase 2% over April sales in May. June's sales will increase by 4% over April sales. July sales will increase 20% over April sales. Vinning maintains inventory of $13,000 plus 25% of the cost of goods sold budgeted for the following month. Cost of goods sold equal 50% of sales revenue. Monthly salaries amount to $8,000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: • Rent: $3,400 • Depreciation: $400 • Insurance: $300 • Income tax: $1,500

Answer 1

А B C Vinning Office Supply Selling and Administrative Expense Budget April and May, 2018 April May 5 Variable expenses: 6 Sales Commission $ 9,000 $ 9,180 7 Fixed expenses: 8 Salaries $ 8,000 $ 8,000 9 Rent $ 3,400 $ 3,400 10 Depreciation $ 400 $ 400 11 Insurance $ 300$ 300 12 Total Fixed Expenses $ 12,100 $ 12,100 13 Total selling and administrative expenses $ 21,100 $ 21,280

BC Vinning Office Supply Selling and Administrative Expense Budget April and May, 2018 4 April May 5 Variable expenses: 6 Sales Commission =180000*5% =183600*5% 7 Fixed expenses: 8 Salaries 8000 8000 9 Rent 3400 3400 10 Depreciation 400 400 11 Insurance 300 300 12 Total Fixed Expenses =SUM(B8:B11) SUM(C8:011) 13 Total selling and administrative expenses |-+B6+B12 =+C6+C12