Consider the sales budget presented in Exercise E22-31. Slate's selling and administrative expenses include the following: Rent,
Question:
Rent, $2,000 per month
Salaries, $4,000 per month
Commissions, 5% of sales
Depreciation, $1,000 per month
Miscellaneous expenses, 2% of sales
Prepare a selling and administrative expense budget for each of the three quarters of
2018 and totals for the nine-month period.
Refer in Exercise E22-31,
Slate, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2018, follows:
In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarter's ending inventory should not be below $5,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $240,000 during the fourth quarter. The January 1 inventory was $38,000. Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period?
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
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