Question

Ultravision Inc. anticipates sales of $410,000 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 $37,000 (half of $74,000 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: 5.37/9.09 polnts awarded January February March April $27,000 30,000 27,000 32,000 Scored Fixed overhead is $23,000 per month. Prepare a schedule of cash payments for January through April. (Assume the $410,000 of sales occur equally over the four months of January through April, .e. Monthly sales $410,000 4.) Ultravision Inc. Cash Payment Schedule December January February March April Monthly material purchase S 37,0005 55,500 x $ 55,500 xS 55,500 x 55,500 55,500 56,500 55,500 63 Payment to material purchases Monthly labor cost Monthly fixed overhead 27,00032,000 00023,000 87,000 |$ 108.500 |$ 105,500 |$ 110,500 27,0000 30,000 2300023 23,000 23, Total cash payments Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

Answer 1

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