Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single product for $50 per unit. Budgeted sales for the next four months follow.

QS 22-25 Selling expense budget LO P1

Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single product for $50 per unit. Budgeted sales for the next four months follow.

  

	January		February		March		April
Sales in units	1,200		2,000		1,600		1,400

  

In addition, sales commissions are 10% of sales and the company pays a sales manager a salary of $6,000 per month. Sales commissions and salaries are paid in the month incurred.

  

Prepare a selling expense budget for January, February, and March.

Explanation:

SCORA INC.
Sales Budget
For January, February, and March
	Budgeted Unit Sales			Budgeted Unit Price			Budgeted Total Sales
January		1,200		$	50		$	60,000
February		2,000			50			100,000
March		1,600			50			80,000
Totals for the quarter		4,800		$	50		$	240,000