Ultravision Incorporated anticipates sales of $370,000 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 $33,000 (half of $66,000 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 February $ 23,000 26,000 March April Fixed overhead is $19,000 per month. Prepare a schedule of cash payments for January through April. Note: Assume the $370,000 of sales occur equally over the four months of January through April, i.e. Monthly sales = $370,000 + 4. Input your answer as positive a value. 23,000 28,000 Total cash payments Monthly material purchase Payment to material purchases Monthly labor cost Monthly fixed overhead Ultravision Incorporated Cash Payment Schedule January December 0 February 0 $ March 0 April

Ultravision Incorporated anticipates sales of $370,000 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 $33,000 (half of $66,000 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 February $ 23,000 26,000 March April Fixed overhead is $19,000 per month. Prepare a schedule of cash payments for January through April. Note: Assume the $370,000 of sales occur equally over the four months of January through April, i.e. Monthly sales = $370,000 + 4. Input your answer as positive a value. 23,000 28,000 Total cash payments Monthly material purchase Payment to material purchases Monthly labor cost Monthly fixed overhead Ultravision Incorporated Cash Payment Schedule January December 0 February 0 $ March 0 April

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

100%

Ultravision Incorporated anticipates sales of $370,000 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 $33,000 (half of
$66,000 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
February
March
April
$ 23,000
26,000
23,000
28,000
Fixed overhead is $19,000 per month.
Prepare a schedule of cash payments for January through April.
Note: Assume the $370,000 of sales occur equally over the four months of January through April, i.e. Monthly sales = $370,000
4. Input your answer as positive a value.
Monthly material purchase
Payment to material purchases
Monthly labor cost
Monthly fixed overhead
Total cash payments
Ultravision Incorporated
Cash Payment Schedule
January
December
$
0 $
February
0 $
March
0 $
April

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