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he Boswell Corporation forecasts its sales in units for the next four months as follows: March April May June 19,000 21,000 18,500 17,000 Boswell maintains
he Boswell Corporation forecasts its sales in units for the next four months as follows: March April May June 19,000 21,000 18,500 17,000 Boswell maintains an ending inventory for each month in the amount of two times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $6 per unit and are paid for in the month the units are produced. Labour cost is $10 per unit and is also paid for in the month incurred. Fixed overhead is $18,500 per month. Dividends of $21,300 are to be paid in May. A production schedule for March, April, and May is provided. Boswell Corporation Production Schedule March April June Forecasted unit sales 17,000 19,000 42,000 May 18,500 34,000 37,000 21,000 37,000 42,000 Desired ending inventory Beginning inventory 38,000 Units to be produced 23,000 16,000 15,500 A production schedule for March, April, and May is provided. Boswell Corporation Production Schedule March May June April 21,000 Forecasted unit sales 19,000 18,500 17,000 Desired ending inventory 42,000 37,000 34,000 Beginning inventory 38,000 42,000 37,000 Units to be produced 23,000 16,000 15,500 Calculate the cash disbursements for materials in March? Choose... Calculate the cash disbursements for labor in March? $228,250 $0 Calculate the cash disbursements from fixed overhead for March? $18,500 $230,000 Calculate the cash disbursements from dividends for March? $21,900 $138,000 $210,000
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