The following budget information is available for Crescent Company for January 2014: Sales Cost of goods sold Freight out Administrative salaries Sales commissions Advertising Depreciation on store equipment Rent on administration building Miscellaneous administrative expenses Percentage of sales on credit it $ OA) $312,500. B) $247,50. Oc) $262,500. OD) $232,500. 800,000 540,000 2,500 100,000 5% of sales 20,000 50,000 60,000 10,000 80% All operating expenses are paid in cash in the month incurred. The amount of expected cash outflow for selling and administrative expenses would be:

The following budget information is available for Crescent Company for January 2014: Sales Cost of goods sold Freight out Administrative salaries Sales commissions Advertising Depreciation on store equipment Rent on administration building Miscellaneous administrative expenses Percentage of sales on credit it $ OA) $312,500. B) $247,50. Oc) $262,500. OD) $232,500. 800,000 540,000 2,500 100,000 5% of sales 20,000 50,000 60,000 10,000 80% All operating expenses are paid in cash in the month incurred. The amount of expected cash outflow for selling and administrative expenses would be:

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 5P: Selling and administrative expense budget and budgeted income statement Budgeted selling and...

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