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DerKrebs [107]
3 years ago
5

The following budget information is available for the HD Sales Company (HDC) for January: Sales $ 320,000 Freight out $ .25 per

unit sold Depreciation on Admin. Equipment $ 10,000 Sales & Admin. Salaries $ 40,000 +2% of sales Advertising $ 12,000 Depreciation on Manuf. Equip. $ 15,000 Lease on Sales Building $ 45,000 Miscellaneous Selling Expenses $ 5,000 All operating expenses are paid in cash in the month incurred.If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement?
Business
1 answer:
Mamont248 [21]3 years ago
5 0

Answer:

The total budgeted selling and administrative expenses would be what amount on the January pro forma income statement is $113,400

Explanation:

Computation of total budgeted selling and administrative expenses in the January pro forma income statement is shown below:

= Freight out + Sales & Admin Salaries + Advertising + Lease on Sales building + Miscellaneous selling expenses

where,

Freight out = $0.25 × 20,000 units = $5,000

Sales & Admin Salaries = 40,000 + 2% of $320,000 = $46,400

So,

The total budgeted selling and administrative expenses is

= $5,000 + $46,400 + $12,000 + $45,000 + $5,000

= $113,400

Since depreciation part is not be considered because it is a non cash expense so we don't include the depreciation cost in computation part.

Hence, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement is $113,400

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Answer:

                        Big Tommy Corporation

      Profit and Loss for the year ended December 31

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Cost of Goods Sold                                                 279,000

Gross Profit                                                               125,000

<em>Operating Expenses:</em>

Salaries and Wages Expense                   58,000

Office Expenses                                         16,000

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Explanation:

Multistep income statement makes a clear distinction on Operating Incomes and Expenses and Non-Operating Incomes and Expenses

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2 years ago
a manufacturer reports the following costs to produce 11,000 units in its first year of operations: direct materials, $11 per un
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The total product cost per unit under absorption costing is: $75.

In absorption costing, the cost of every unit produced is worked out by adding up the direct cost of materials, direct labor, variable overhead, and the fixed overhead. Unlike in the case of marginal costing where the fixed cost is treated as period cost, in absorption costing, fixed cost is treated as a product cost.

The cost per unit

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Learn more about absorption costing here:brainly.com/question/26276034

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<em>In the graph, the point of intersection of the demand and the supply curve represents the equilibrium point. At this point, the price on the Y axis is 3 units while the corresponding quantity on the X axis is also 3 units.</em>

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