The estimated selling and administrative expense for May is closest to:

A) $115,700
B) $80,000
C) $77,130
D) $35,700

The estimated selling and administrative expense for May is computed as follows: Reference: CH08-Ref6
Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next 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 the following month's sales.The ending raw materials inventory should equal 30% of the following month's raw materials production needs.