Question

Answer the following questions using the information below:

The following information pertains to the January operating budget for Casey Corporation a retailer:

Budgeted sales are $200,000 for January
Collections of sales are 50% in the month of sale and 50% the next month
Cost of goods sold averages 70% of sales
Merchandise purchases total $150,000 in January
Marketing costs are $3,000 each month
Distribution costs are $5,000 each month
Administrative costs are $10,000 each month

*37) For January, the amount budgeted for the nonmanufacturing costs budget is ________.*
A) $78,000
B) $10,000
C) $168,000
D) $18,000

Answer 1

The nonmanufacturing costs budget for January is $18,000.

Step-by-step explanation:

To calculate the nonmanufacturing costs budget for January, we need to consider the marketing costs, distribution costs, and administrative costs. The marketing costs are $3,000, distribution costs are $5,000, and administrative costs are $10,000. Therefore, the total nonmanufacturing costs budget for January is $3,000 + $5,000 + $10,000 = $18,000.