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Ace always keeps an ending inventory equal to 140 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is

Ace always keeps an ending inventory equal to 140 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 3,920 units, which is consistent with this policy. Ace always keeps an ending inventory equal to 140 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 3,920 units, which is consistent with this policy.

Materials cost $11 per unit and are paid for in the month after production. Labour cost is $4 per unit and is paid in the month the cost is incurred. Overhead costs are $16,000 per month. Interest of $10,000 is scheduled to be paid in March, and employee bonuses of $15,200 will be paid in June.

a. Prepare a monthly production schedule for January through June. (Enter all values as positive value.)

b. Prepare a monthly summary of cash payments for January through June. Ace produced 2,600 units in December.

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