4-23 Schedule of cash payments [LO4-2] The Volt Battery Company has forecast its sales in units as follows: January 2.200 February 2,050 March 2,000 April 2,500 Hay June July 2,750 2,900 2,600 Volt Battery always keeps an ending inventory equal to 120 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 2.640 units, which is consistent with this policy Materials cost $11 per unit and are paid for in the month after purchase Labor cost is $4 per unit and is paid in the month the cost is incurred Overhead costs are $13.000 per month. Interest of $9.400 is scheduled to be paid in March, and employee bonuses of $14,500 will be paid in June Pay 1 of 10 Next > DO 74 Return to question ING 00 te 218 AM 3/24/2522 This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. incurred. Overhead costs are $13,000 per month, Interest of $9,400 is scheduled to be paid in March, and employee bonuses of $14,600 will be paid in June. a. Prepare a monthly production schedule for January through June. Return to question Answer is complete and correct. Volt Battery Company Production Schedule January February March April May June July Projected unit sales 2.200 2.050 2,000 2.500 2,750 2,900 2.600 Desired ending inventory 2.460 2.400 3,000 3.300 3.480 3.120 Total units required 4.660 4.450 5.000 5.800 6230 6020 Beginning inventory 2,640 2.460 2.400 3.000 3.300->> 3,480 Units to be produced 2,020 1.990 2.600 2.800 2,930 2540 1 of 10 Next > b. Prepare a monthly summary of cash payments for January through June Volt Battery produced 2,000 units in December Answer is not complete. Volt Battery Company Units produced Material cost Labor cost Overhead cost Interest Summary of Cash Payments December January February March April May June 2,000 22,000 $ S 22.220 21,890 s 28.600 $ 30,800 $ 32.230 C 8080 7.960 10,400 11.200 11.720 10.160 C 13.000 G 13.000 O 13,000 13.000 13.000 13,000 9,400 Employee bonuses Total cash paymerits 5 43,080 43.180 S 54690 S 52.800 $ 55 520 5 Pav 1 of 10 O 14.600 O 69.990 Return to question Next > DO ING 258 AM 3/04/2002 D