Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget f

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Sevenbergen Corporation makes one product and has provided thefollowing information to help prepare the master budget for thenext four months of operations:
Credit sales are collected:
40% in the month of the sale
60% in the following month
Raw materials purchases are paid:
30% in the month of purchase
70% in the following month
The ending finished goods inventory should equal 20% of thefollowing month's sales. The ending raw materials inventory shouldequal 30% of the following month’s raw materials productionneeds.
The estimated selling and administrative expense for August isclosest to:
Multiple Choice
$70,000
$57,970
$16,950
$86,950