The expected revenues and expenses of the company OutofIt for the quarter ending on December 31st are:
Question:
October | November | December | |
ProjectedSales | $135,000 | $160,000 | $145,000 |
Monthlyexpenses:
Wages&Salaries(split Marketing55%,Administration45%) | $20,000 |
DepreciationofMotorVehiclesformarketingactivities | 1,200 |
Depreciation of fixtures andfittings (split Marketing55%andAdministration45%) | 1,500 |
Stationeryforadministrationactivities | 900 |
Rent for administrationactivities | 600 |
Interest onloan | 500 |
Generalexpenses(split Marketing60%andAdministration40%) | 1,000 |
Bankcharges | 75 |
Advertising $1,200 p.m. plus 3% ofsales | |
Commission 4% ofsales | |
Freight 2% ofsales | |
Discount Allowed 1.5% ofsales | |
Payroll on costs being 5.0% ofWages and Salaries (classified as for Wages and Salaries) |
Required:
Please prepare a classified expenses budget for the quarter ending on 31st December using the table provided below.
Tip: Ensure that all expenses are for the quarter, i.e. 3 months.
ClassifiedExpensesBudget - Quarter ending31December
Budgeted sales revenue for Dec quarter = $440,000
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay