Walnut Has Forecast Sales for the Next Three Months as Follows

question 87

Multiple Choice

Walnut has forecast sales for the next three months as follows: July 4,000 units,August 6,000 units,September 7,500 units.Walnut's policy is to have an ending inventory of 40% of the next month's sales needs on hand.July 1 inventory is projected to be 1,500 units.Selling and administrative costs are budgeted to be $15,000 per month plus $5 per unit sold.What are budgeted selling and administrative expenses for July?

• A)$24,500
• B)$39,500
• C)$35,000
• D)$30,500