Craig Manufacturing Company's Budgeted Income Statement Includes the Following Data

question 60

Essay

Craig Manufacturing Company's budgeted income statement includes the following data:
$\begin{array}{|l|r|r|r|r|}\hline \text { Data extracted from budgeted } \\\text { Income statement } & \text { Mar } & \text { Apr } & \text { May } & \text { Jun } \\\hline \text { Sales } & \$ 120,000 & \$ 90,000 & \$ 95,000 & \$ 100,000 \\\hline\text { Commission expense - } \mathbf{1 5 \%} \text { of sales } & 18,000 & 13,500 & 14,250 & 15,000 \\\hline \text { Salary exp } & 30,000 & 30,000 & 30,000 & 30,000 \\\hline \text { Miscellaneous expense }-4 \% \text { of sales } & 4,800 & 3,600 & 3,800 & 4,000 \\\hline \text { Rent expense} & 3,600 & 3,600 & 3,600 & 3,600 \\ \hline \text { Utility expense } & 1,900 & 1,900 & 1,900 & 1,900 \\\hline \text { Insurance expense } & 2,100 & 2,100 & 2,100& 2,100 \\\hline \text { Depreciation expense } & 4,400 & 4,400 & 4,400 & 4,400 \\ \hline\end{array}$

The budget assumes that 60% of commission expenses are paid in the month they were incurred and the remaining 40% are paid one month later. In addition, 50% of salary expenses are paid in the month incurred and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense and utility expenses are assumed to be paid in the same month in which they are incurred. Insurance was prepaid for the year on January 1.
Please provide a budget of cash payments for operating expenses using the following format:
$$\begin{array} { | l | c | c | c | c | } \hline \begin{array} { l } \text { Budget of Cash Payments for } \\\text { Operating Expenses }\end{array} &\quad\quad & \text { Apr } & \text { May } & \text { Jun } \\\hline \text { Variable expenses } & & & & \\\hline \begin{array} {l } 40 \% \text { of last month's commission } \\\text { expense }\end{array} & & & & \\\hline \begin{array} { l} 60 \% \text { of this month's commission } \\\text { expense }\end{array} & & & & \\\hline \text { Misc. expenses - 4\% of sales } & & & & \\\hline \text { Total variable operating expenses } & & & & \\\hline \text { Fixed expenses } & & & & \\\hline 50 \% \text { of last month's salary expense } & & & & \\\hline 50 \% \text { of this month's salary expense } & & & & \\\hline \text { Rent exp. } & & & & \\\hline \text { Utility exp. } & & & & \\\hline \begin{array} { l } \text { Total payments for fixed operating } \\\text { expense }\end{array} & & & & \\\hline \text { Total payments for operating expenses } & & & & \\\hline\end{array}$$

---

Definitions:

Capsules

In microbiology, a gelatinous covering that encloses some bacteria, enhancing their ability to cause disease.

Sex Pili

Hair-like structures on the surface of bacterial cells that are involved in the transfer of DNA during conjugation.

Chemical Signals

Molecules released by cells to communicate with each other, affecting the behavior or physiology of other cells.

Zygotes

The initial cell formed when two gamete cells (e.g., sperm and ovum) are fused, representing the earliest developmental stage of many organisms.