Funnel Manufacturing Company has provided the follwoing information: Budgeted Sa
ID: 2431141 • Letter: F
Question
Funnel Manufacturing Company has provided the follwoing information:
Budgeted
Sales
$ 76,000
85,000
92,000
79,000
Budgeted Selling and Administrative Expenses Per Month are as follows:
Wages, $15,000
Advertising, $12,000
Depreciation, $3,000
Other, 4 percent of Sales
Cost of Goods Sold is 60% of Sales. All inventory is purchased in the month it is sold. Inventory purchases are paid 2/3 in the month of purchase, the remaining 1/3 paid in the following month.
What is the expected cash disbursements for the Selling and Administrative Expenses for February?
$33,400
$27,000
$30,400
$28,700
MonthBudgeted
Sales
$ 76,000
February85,000
March92,000
April79,000
Explanation / Answer
Answer - (c) $30,400
Cash disbursement for selling and administrative expenses for feburary = Wages + Advertising + 4% of sales
= $15,000 + $12,000 + ( 4% x $85,000) = $30,400
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