Austin Company The following information is available for Austin Company for its first year of operations:
Refer to Austin Company.What was the total amount of Selling,General and Administrative expense incurred by Austin Company?
A)$30,000
B)$62,500
C)$6,000
D)can't be determined from the information given

Question

Austin Company The following information is available for Austin Company for its first year of operations:
 Refer to Austin Company.What was the total amount of Selling,General and Administrative expense incurred by Austin Company?
A)$30,000 
B)$62,500 
C)$6,000 
D)can't be determined from the information given

Quizplus · Accepted Answer

The total amount of Selling, General and Administrative expense is found by adding up all of the expenses listed under that category in the Income Statement. From the given information, we can see that the expenses included under this category are: Salaries and Wages Expense ($27,500), Rent Expense ($20,000), Insurance Expense ($4,000), Utilities Expense ($4,000), and Miscellaneous Expense ($7,000). Adding these up, we get a total of $62,500 (choice B).

Austin Company the Following Information Is Available for Austin Company