Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Ultravision Inc anticipates sales of $400000 from January through April Materials will rep...

Ultravision Inc anticipates sales of $400000 from January through April Materials will represent 50 percent of sales and because of level production material purchases will be equal for each

Ultravision Inc. anticipates sales of $400,000 from January through April. Materials will represent 50 percent of sales, and because of level production, material purchases will be equal for each month during the four months of January, February, March, and April.

Materials are paid for one month after the month purchased. Materials purchased in December of last year were $36,000 (half of $72,000 in sales). Labor costs for each of the four months are slightly different due to a provision in the labor contract in which bonuses are paid in February and April. The labor figures are:

   
January $26,000
February 29,000
March 26,000
April 31,000
 

Fixed overhead is $22,000 per month.

Prepare a schedule of cash payments for January through April. (Assume the $400,000 of sales occur equally over the four months of January through April, i.e. Monthly sales = $400,000 / 4.)

 
 
Ultravision Inc.
Cash Payment Schedule
  December January February March April
Monthly material purchase          
Payment to material purchases          
Monthly labor cost          
Monthly fixed overhead          
Total cash payments   $0 $0 $0 $0

Aug 15 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions