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Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 101,000 July $ 46,000 February 94,000 August 46,000 March 26,000 September 56,000
Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 101,000 July $ 46,000 February 94,000 August 46,000 March 26,000 September 56,000 April 26,000 October 86,000 May 21,000 November 106,000 June 36,000 December 124,000 Total sales = $768,000 Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $5 per unit and costs $2 per unit to produce. A level production policy is followed. Each month's production is equal to annual sales (in units) divided by 12. Of each month's sales, 40 percent are for cash and 60 percent are on account. All accounts receivable are collected in the month after the sale is made. (a) Construct a monthly production and inventory schedule in units. Beginning inventory in January is 26,000 units. BOMBS AWAY VIDEO GAMES CORPORATION Production and inventory schedule in units Beginning inventory + Production
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