Question

Warshaw Company budgets payroll at S3.600 per month plus a percentage of monthly sales. The June operating expenses budget includes total payroll of $13.200 with budgeted sales of S160,000. Sales for July are budgeted at $180,000 while purchases of inventory for July are budgeted at $95,000. Depreciation and insurance for July are estimated at S1,000 and $600, respectively. Office and administrative expenses related to purchasing inventory are budgeted at 10% of purchases for the month. The purchase of $2,500 in equipment and $1,500 in furniture is expected in July. The total operating expenses budgeted for July are O A. $14,400. O B. $23,900. O c. $25,500 O D. $14,800



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