Question 322 324329331 mes purchase in July 322 Refer to 319

me\'s purchase in July? 3-22 Refer to 3-19. Jaime\'s Hat Shop expects to incur the following expenses for each of the third quarter of this year: ing expenses for each month Rent (30% general and administrative, 70% selling) Utilities (30% general and administrative, 70% selling) Advertising Salaries (50% general and administrative, 50% selling) Commissions (for each hat sold) $1,200 5,000 In January, Jaime\'s had prepaid the rent for the whole year. Jaime plans to pay for all the other expenses in the month they occur Required: (I) Prepare a selling expenses budget for the third quarter of this year. (2) Prepare a general and administrative expenses budget for the third quar- ter of this year.

Solution

As per policy only first question will be answered completely

Selling expense budget

july

August

September

Total 3^rd quarter

rent

840

840

840

2520

Utilities

420

420

420

1260

Advertising

400

400

400

1200

Salaries

2500

2500

2500

7500

Commission

800

1600

2080

4480

Total budgeted selling expense

4960

5760

6240

16960

Rent = 1200*70% = 840

Utilities = 600*70% = 420

Salaries = 5000*50% = 2500

Commission: units sold *2

July = 400*2 = 800

August = 800*2 = 1600

September = 1040*2 = 2080

General and administrative budget

july

August

September

Total 3^rd quarter

rent

360

360

360

1080

Utilities

180

180

180

540

Salaries

2500

2500

2500

7500

Total budgeted general and administrative expense

3040

3040

3040

9120

Rent = 1200*30% = 360

Utilities = 600*30% = 180

Salaries = 5000*50% = 2500

	july	August	September	Total 3rd quarter
rent	840	840	840	2520
Utilities	420	420	420	1260
Advertising	400	400	400	1200
Salaries	2500	2500	2500	7500
Commission	800	1600	2080	4480
Total budgeted selling expense	4960	5760	6240	16960