 Hello, in this lecture, we're going to continue on with the master budget. We're going to move on to the selling expense budget here. Let's take a look at the process real quick. We do need to go in order in this case. We started off with the sales budget. We need to do the sales budget before we can do anything basically in the budgeting process. Then we looked at the production budget. How many things are we going to need to produce? How many units do we need to produce in order to meet the sales? And that would allow us to think about how much stuff we need to purchase in terms of raw material and how much we're going to need to pay in terms of wages, which are probably the largest to expense if we are manufacturing stuff. Then we had the factory overhead, which included a variable and fixed portion. And now we're moving down here. These are kind of more of the miscellaneous type of budgets, and they'll be different depending on the type of industry that we are in. We will generally have some type of selling expenses. And it just depends on how we incur those selling expenses in different types of companies. So we're going to have to look at the problem and see what we have in there. In this case, we have a sales commission for part of our selling expenses. And it says here that the sales commission is 9% of sales. So sales commission percent of sales paid. So what that's trying to say here is that we are going to pay sales commission at 9% of the sales. Therefore, we're going to start off with the budgeted sales. And we're going to get that amount from the sales budget, obviously, which we did all the way up top. So within July, I'm going to select equals, and I'm going to scroll all the way up to where we did the sales budget and point to that number. So we're going to scroll all the way up to the top. And I'm looking for the sales budget. Here's the sales budget. Here's July. And so it's over here on the 494. This is dollars not units. So this is the dollar sales. That's what we're going to calculate the commission on. I'm going to select tab. Now we are in August. I'm going to do the same thing for August. So we want the sales numbers from the sales budget. So I'm going to scroll all the way up and hit equals first, then I'm going to scroll all the way up to the top. And we're going to go to the sales for August, which is in dollars 478 400. And then we'll do the same thing for September. So we're going to say this equals scroll all the way up to the sales budget. And we're looking for that 42 four. All right, so we've adjusted this to put the dollar sign in there. So we can see that we are talking about dollars here. And there's always we always want to keep that straight when we're going through the budget. When are we talking about dollars? When are we talking about units? Okay, so now we're going to multiply that times the sales commission percent. And we're going to give a 9% sales commission. So 9% all the way across for July, August and September. We can then calculate that out. So that means that if we had sales in July of 4944 times 9% sales commission, we're going to pay sales commission of 44 496. Same thing for August. We're going to say 4,490 times the 9% and tab. Also note that the 9% is a percent, of course, because of the formatting of the sales, meaning if you go to the home tab and the numbers group and you want to hit the percent sign if you want it in the format of a percent, otherwise you can just type in 0.02. Also note that you want to have the decimals where they should be in order to display the amount of decimals that you would like to see. So then we're in September, we're going to say this equals the sales 4924 times the percent of 9%. So that gives us the sales commission and we have some more blank space. So I'm assuming we have some other stuff related to sales. So we're going to have to go down here and what we're looking for in the materials is what stuff is related to sales versus the administrative type of information. So commission, of course, would be a sales type of activity. We can also see down here that we have a sales manager monthly salary. So obviously anything that says sales in it is probably going to be somewhere in the sales budget. This is going to be a fixed cost in nature and that it doesn't change from month to month. So July, we're still going to pay that. Supervisors 3-5, 3-5 for August, 3-5 for September. Therefore we can now, that's all that we have in terms of sales, stuff that says sales in it in our information. So we can add this up. So we're going to say July, we have the 44 commission, 44, 496 plus the 3,005 of the salaries gives us a total sales of the 47996 and we're going to multiply this out as well through August, this plus, this I should say, tab and then September equals the commission plus the salaries and enter. Also note once again that this could be have surrounding in it, meaning if I go to the home tab, numbers group and I increase the in decimals, this one came out happened to come out or even, but just be aware that it is possible that we could have some decimals there because we're talking about a budget. I'm very happy to just round it to the nearest dollar because pennies will not be generally material to decision making. So now we're going to move on to the general and administrative expenses and once again this will be