Data Table Sosa Company has provided the following budget information for the fi

Question

Data Table Sosa Company has provided the following budget information for the first quarter of 2016 (Click the icon to view the budget information.) Additional data related to the first quarter of 2016 for Sosa Company 1(Click the icon to view the data.) Read the requirements Manufacturing Overhead Total sales Budgeted purchases of direct materials Budgeted direct labor cost Budgeted manufacturing overhead costs: 297,500 39,450 38,880 Variable manufacturing overhead Depreciation Insurance and property taxes 3,645 600 9,120 Total payments for manufacturing overhead Budgeted selling and administrative expenses Selling and Administrative Expenses Salaries expense Rent expense Insurance expense Depreciation expense Supplies expense 5,000 3,000 1,200 100 2,975 - Choose from any list or enter any number in the input fields and then click Check Answer

Explanation / Answer

solution-

manufacturing overhead

budgeted puchases of direct material (70% of the current querter is to be taken $ 27615

i.e $39450*70%=27615)

budgeted purchases of direct material (30% of the last querter is to be taken

i,e amount equals to accounts payable) $10500

budgeted overheads ;

variable overheads $3645

depreciation $ 600

insurance $9120

total payments for manufacuring overheads =$90360

selling and admin expenses

salaries $5000

rent $3000

insurance $1200

depreciation $100

supplies expenses $2975

Total expenses of selling and admin expenses = $12275

note

here i assume that accounts payable is 30% of the direct material purchased in the last querter,

capital expenditue shall not be taken into the account only depreciation on equipment is taken into account .

income tax is not considered in manufacuring overheads,and selling and admin overheads

sales is irrelvent for preparation of manufacturing and salling exp account

so based on the provided information i prepared manufacturing,and selling and admin overheads

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