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Financial & Managerial Accounting
Found in: Page 913
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Zilly Co. predicts sales of $400,000 for June. Zilly pays a sales manager a monthly salary of $6,000 and a commission of 8% of that month’s sales dollars.

Prepare a selling expense budget for the month of June.

The total selling expense budget for the month of June will be $38,000.

See the step by step solution

Step by Step Solution

Given the amounts

Particulars

Amount

Predicted sales

$400,000

Monthly salary to sales manager

$6,000

Commission

8%

Preparation of the selling expense budget for the month of June

Zilly Co.

Selling Expense Budget

For the month of June

Particulars

Amount

Budgeted sales

$400,000

Multiply: Commission

8%

Sales commission

$32,000

Add: Monthly salary to sales manager

$6,000

Selling expense budget

$38,000

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