1. The following budget information is available for the HD Sales Company (HDC) for January: Sales: $320,000 Freight out: $.25 per unit sold Depreciation on Admin. Equipment: $10,000 Sales & Admin. Salaries: $40,000 + 2% of sales Advertising: $12,000 Depreciation on Manuf. Equip.: $15,000 Lease on Sales Building: $45,000 Miscellaneous Selling Expenses: $5,000 All operating expenses are paid in cash in the month incurred. If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement?

1. The following budget information is available for the HD Sales Company (HDC) for January: Sales: $320,000 Freight out: $.25 per unit sold Depreciation on Admin. Equipment: $10,000 Sales & Admin. Salaries: $40,000 + 2% of sales Advertising: $12,000 Depreciation on Manuf. Equip.: $15,000 Lease on Sales Building: $45,000 Miscellaneous Selling Expenses: $5,000 All operating expenses are paid in cash in the month incurred. If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...

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