Ultravision Limited anticipates sales of $430,000 from January through April. Materials will represent 60 percent of sales and because of level production, material purchases will be equal for each month during these four months. 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). Labour costs for each of the four months are slightly different due to a provision in the labour contract in which bonuses are paid in February and April. Fixed overhead is $25,000 monthly. The labour figures are: January $29,000 February 32,000 March 29,000 April 34,000 Prepare a schedule of cash payments for January through April. Ultravision Limited Cash Payment Schedule Purchases Payment to material purchases Labour Fixed overhead Total cash payments December January February March April $ $ $ $ $ $ $ $ UF $

Ultravision Limited anticipates sales of $430,000 from January through April. Materials will represent 60 percent of sales and because of level production, material purchases will be equal for each month during these four months. 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). Labour costs for each of the four months are slightly different due to a provision in the labour contract in which bonuses are paid in February and April. Fixed overhead is $25,000 monthly. The labour figures are: January $29,000 February 32,000 March 29,000 April 34,000 Prepare a schedule of cash payments for January through April. Ultravision Limited Cash Payment Schedule Purchases Payment to material purchases Labour Fixed overhead Total cash payments December January February March April $ $ $ $ $ $ $ $ UF $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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