Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. Production budget: The ending finished goods inventory is always 25% of next month's unit sales. Selling and administrative expense budget: The variable selling and administrative expense is $4.00 per unit. The total fixed selling and administrative expense is $60,000 including $11,000 of depreciation. What are the total budgeted cash disbursements for selling and administrative expense for July?

Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. Production budget: The ending finished goods inventory is always 25% of next month's unit sales. Selling and administrative expense budget: The variable selling and administrative expense is $4.00 per unit. The total fixed selling and administrative expense is $60,000 including $11,000 of depreciation. What are the total budgeted cash disbursements for selling and administrative expense for July?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 5P

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