Question

3-19 Jaime’s Hat Shop sells hats with college logos on them; the hats sell for $22 each. This year, Jaime’s expects to sell 350 hats in May, 300 in June, 400 in July, 800 in August, 1,040 in September, and 750 in October. On average, 25 percent of its customers purchase on credit. Jaime’s allows those customers to pay for their purchases the month after they have made their purchases. Required: Prepare a sales budget for Jaime’s Hat Shop for the third quarter of this year.

I'VE ALREADY DONE THIS, JUST NEED HELP WITH THE QUESTION BELOW, THE QUESTION ABOVE (3-19) IS JUST FOR REFERENCE

Refer to 3-19. Jaime’s Hat Shop expects to incur the following expenses for each month of the third quarter of this year:

Rent (30% general and administrative, 70% selling) 1,200

Utilities (30% general and administrative, 70% selling) 600

Advertising 400

Salaries (50% general and administrative, 50% selling) 5,000

Commissions (for each hat sold) 2

In January, Jaime’s had prepaid the rent for the whole year. Jaime plans to pay for all the other expenses in the month they occur.

Required:

(1) Prepare a selling expenses budget for the third quarter of this year.

(2) Prepare a general and administrative expenses budget for the third quarter of this year.

Answer 1