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Cirag Manufacturing Company's Budgeted Income Statement Includes the Following Data

Question 13

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Cirag Manufacturing Company's budgeted income statement includes the following data: Cirag Manufacturing Company's budgeted income statement includes the following data: The budget assumes that 60% of commission expenses are paid in the month in which they are incurred and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the month in which they are incurred and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense and utility expenses are assumed to be paid in the same month in which they are incurred. Insurance was prepaid for the year on January 1. Calculate the budgeted cash payments for selling and administrative expenses for the quarter ending June 30. The budget assumes that 60% of commission expenses are paid in the month in which they are incurred and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the month in which they are incurred and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense and utility expenses are assumed to be paid in the same month in which they are incurred. Insurance was prepaid for the year on January 1. Calculate the budgeted cash payments for selling and administrative expenses for the quarter ending June 30.

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