Question

A merchandising company's budget includes the following data for January: Sales: $400,000; COGS: $270,000; Administrative salaries: $1,250; Sales commissions: 5% of sales; Advertising: $10,000; Depreciation on store equipment: $25,000; Rent on administrative building: $30,000; Miscellaneous administrative expenses: $5,000. The total general and administrative expenses on the January general and administrative expense budget will be $.

Answer 1

Answer:

$61,250

Explanation:

The computation of the total general and administrative expense is shown below:

= Administrative salaries + Rent on administrative building + Miscellaneous administrative expenses + Depreciation on store equipment

= $1,250 + $30,000 + $5,000 + $25,000

= $61,250

All other expenses which are given in the question are related to the selling expenses.  Hence, ignored it