A company manufactures phones.

Expected Unit Sales: 100,000Unit Selling Price: $150Total Sales: $15,000,000

And the Direct Material Budget is as below:

The company pays its vendors 10 days after raw materials are received, so approximately 80% of purchases are paid in the month of production and 20% are paid the following month. Accounts payable at the end of the prior year totalled $130,000. The company's managers budget cash flows on a quarterly basis.

Question: What is the schedule of Direct Material Payment during the year?

Units to be Produced 100,200 Direct Materials Circuit: Batter!\"r Case Total Direct Materials per Unit 1 1 1 Needed for Production 100,200.00 100,200.00 100,200.00 100,200.00 Cost per Unit 5 35.00 5 20.00 5 10.00 5 65.00 Total Needed for Production (in 5} 5 3,507,000.00 5 2,004,000.00 5 1,002,000.00 5 6,513,000.00 Add: Desired Ending Direct Materials (in 5} 5 35,000.00 5 25,000.00 5 12,000.00 5 72,000.00 Total Materials Required (in 5} 5 3,542,000.00 5 2,029,000.00 5 1,014,000.00 5 6,585,000.00 Less: Beginning Direct Materials (in 5} 5 25,000.00 5 20,000.00 5 10,000.00 5 55,000.00 Total Cost of Direct Materials Purchase 5 3,517,000.00 5 2,009,000.00 5 1,004,000.00 5 6,530,000.00