Saturday, December 5, 2009

How do you work out this Accounting Question?

Sales for March, April and May are expected to be $200,000, $260,000 and $290,000 respectively. Administrative Expenses are $15,000 per month plus 15% of Sales. Selling Expenses are $20,000 per month plus 10% of Sales. Calculate the total budgeted Selling Expenses and Administration Expenses for April.





A 35,000


B 54,000


C 100,000How do you work out this Accounting Question?
Admin Exp. = 15,000 + (260,000*15%)


15,000 + 39,000 = 54,000





Selling Exp. = 20,000 + (260,000*10%)


20,000 + 26,000 = 46,000





Total = 54,000 + 46,000 = 100,000

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