4-23 Schedule of cash payments [LO4-2] The Volt Battery Company has forecast its sales in units as follows: January 1,500 February 1,350 March 1,300 April 1,800 May 2,050 June July 2,200 1,900 es Volt Battery always keeps an ending inventory equal to 130 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 1,950 units, which is consistent with this policy. Materials cost $10 per unit and are paid for in the month after purchase. Labor cost is $3 per unit and is paid in the month the cost is incurred. Overhead costs are $9,500 per month. Interest of $8,700 is scheduled to be paid in March, and employee bonuses of $13,900 will be paid in June. a. Prepare a monthly production schedule for January through June. Volt Battery Company .... C.L.... C 900 will be paid in June. Prepare a monthly production schedule for January through June. Projected unit sales Desired ending inventory Volt Battery Company Production Schedule January February March April May June July Total units required 0 0 0 Beginning inventory Units to be produced 0 0 0 0 0 0 b. Prepare a monthly summary of cash payments for January through June. Volt Battery produced 1,300 units in December Volt Battery Company Summary of Cash Payments Units produced Material cost Labor cost Overhead cost Interest Employee bonuses December January February March April May June Total cash payments $ 0 $ 0 $ 0 $ 0 $ $ 0