Posted by Raana on .
The prince Albert Corporation has forecasted the following sales for the first seven months
Monthly material purchase are set to 30 % of forecasted sales for the next month. Of the total material costs, 40 % are paid in the month of purchase and 60 % are paid in the following month. Labor costs will run $4,000 per month and fixed overhead is $2,000 per month. interest payments on the debt will be $3,000 for both March and June. Finally,the Prince Albert salespeople will receive a 1.5 % comission on total sales for the first six months of the eyar to be paid on june 30.
Prepare a monthly summary of cash payments for the six months from jan through june (compute prior december purchases to help get material paymnets for january)