Calculate the Selling and Administrative Expenses Budget. Bottas Manufacturing,

Question

Calculate the Selling and Administrative Expenses Budget.

Bottas Manufacturing, Inc. Balance Sheet December 31, 2018 ASSETS Cash Marketable securities Accounts receivable Inventories: $25,711.00 20,000.00 565,844.43 Finished goods Work in process Direct materials $ 86,385.60 0.00 7,193.94 93,579.54 Total Current Assets 705,134.97 Property, plant and equipment Less: Accumulated depreciation Total Property, Plant and Equipment $ 844,200.00 (318,600.00) 525,600.00 Total Assets $ 1,230,734.97 LIABILITIES AND STOCKHOLDERS EQUITY Accounts payable Income taxes payable Total Current Liabilities $5,755.15 0.00 $5,755.15 436,000.00 441,755.15 Long-term notes payable Total Liabilities Common stock ($5.00 Par) Paid-in capital Retained earnings Total Stockholders Equity $475,000.00 100,000.00 213,979.82 788,979.82 $ 1,230,734.97 Total Liabilities and Stockholders Equity Total Liabilities and Stockholders Equity

Explanation / Answer

Solution:

Bottas Manufacturing company Selling and administrative expenses budget For the quarter ending March 31, 2019 Particulars January February March Quarter Variable selling and administrative expenses: Freight out ($0.80 per unit) $5,960.00 $5,672.00 $6,656.00 $18,288.00 Sales Commissions $4,469.00 $4,253.00 $4,991.00 $13,713.00 Total variable selling and administrative expenses $10,429.00 $9,925.00 $11,647.00 $32,001.00 Fixed Selling and administrative expenses: Salaries $8,700.00 $8,700.00 $8,700.00 $26,100.00 Rent $1,800.00 $1,800.00 $1,800.00 $5,400.00 Advertising $150.00 $150.00 $150.00 $450.00 Insurance $250.00 $250.00 $250.00 $750.00 Depreciation $10,050.00 $10,050.00 $10,050.00 $30,150.00 Total fixed selling and administrative expenses $20,950.00 $20,950.00 $20,950.00 $62,850.00 Total Selling and Administrative Expenses $31,379.00 $30,875.00 $32,597.00 $94,851.00

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