Question: 3-22/ 3-24/3-29/3-31 me\'s purchase in July? 3-22 Refer to 3-19. Jaime
ID: 2611870 • Letter: Q
Question
Question: 3-22/ 3-24/3-29/3-31 me's purchase in July? 3-22 Refer to 3-19. Jaime's Hat Shop expects to incur the following expenses for each of the third quarter of this year: ing expenses for each month Rent (30% general and administrative, 70% selling) Utilities (30% general and administrative, 70% selling) Advertising Salaries (50% general and administrative, 50% selling) Commissions (for each hat sold) $1,200 5,000 In January, Jaime's had prepaid the rent for the whole year. Jaime plans to pay for all the other expenses in the month they occur Required: (I) Prepare a selling expenses budget for the third quarter of this year. (2) Prepare a general and administrative expenses budget for the third quar- ter of this year.
Explanation / Answer
As per policy only first question will be answered completely
Selling expense budget
july
August
September
Total 3rd quarter
rent
840
840
840
2520
Utilities
420
420
420
1260
Advertising
400
400
400
1200
Salaries
2500
2500
2500
7500
Commission
800
1600
2080
4480
Total budgeted selling expense
4960
5760
6240
16960
Rent = 1200*70% = 840
Utilities = 600*70% = 420
Salaries = 5000*50% = 2500
Commission: units sold *2
July = 400*2 = 800
August = 800*2 = 1600
September = 1040*2 = 2080
General and administrative budget
july
August
September
Total 3rd quarter
rent
360
360
360
1080
Utilities
180
180
180
540
Salaries
2500
2500
2500
7500
Total budgeted general and administrative expense
3040
3040
3040
9120
Rent = 1200*30% = 360
Utilities = 600*30% = 180
Salaries = 5000*50% = 2500
july
August
September
Total 3rd quarter
rent
840
840
840
2520
Utilities
420
420
420
1260
Advertising
400
400
400
1200
Salaries
2500
2500
2500
7500
Commission
800
1600
2080
4480
Total budgeted selling expense
4960
5760
6240
16960
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