Ultravision Incorporated anticipates sales of $430,000 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 $39,000 (half of $78,000 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 $ 29,000 32,000 March April 29,000 34,000 Fixed overhead is $25,000 per month. Prepare a schedule of cash payments for January through April. Note: Assume the $430,000 of sales occur equally over the four months of January through April, i.e. Monthly sales = $430,000 + 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 February March April
Ultravision Incorporated anticipates sales of $430,000 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 $39,000 (half of $78,000 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 $ 29,000 32,000 March April 29,000 34,000 Fixed overhead is $25,000 per month. Prepare a schedule of cash payments for January through April. Note: Assume the $430,000 of sales occur equally over the four months of January through April, i.e. Monthly sales = $430,000 + 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 February March April
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Am. 367.
Transcribed Image Text:Ultravision Incorporated anticipates sales of $430,000 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 $39,000 (half of
$78,000 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:
$ 29,000
32,000
March
29,000
34,000
April
Fixed overhead is $25,000 per month.
Prepare a schedule of cash payments for January through April.
Note: Assume the $430,000 of sales occur equally over the four months of January through April, i.e. Monthly sales = $430,000
+ 4. Input your answer as positive a value.
January
February
Monthly material purchase
Payment to material purchases
Monthly labor cost
Monthly fixed overhead
Total cash payments
Ultravision Incorporated
Cash Payment Schedule
January
December
February
March
April
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