Consider the facts presented in Exercise E22A- 32. Tremonts selling and administrative expenses include the following: Rent, $ 2,000 per month Salaries, $ 3,000 per

Consider the facts presented in Exercise E22A- 32. Tremont’s selling and administrative expenses include the following:

Rent, $ 2,000 per month

Salaries, $ 3,000 per month

Commissions, 3% of sales

Depreciation, $ 1,000 per month

Miscellaneous expenses, 1% of sales

Prepare a selling and administrative expense budget for each of the three quarters of 2014 and totals for the nine- month period.

Exercise E22A-32

Quarter Ended Nine-Month Total March 31 September 30 Cash sales, 20% Credit sales, 80% Total sales June 30 34,000 136,000 $120,000 170,000 24,000 96,000 29,000 116,000 145,000 87,000 348,000 $435,000