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The Ace Battery Company has forecast its sales in units as follows: January 2,600 May February 2,450 June March April 2,400 July 2,900 Ace always
The Ace Battery Company has forecast its sales in units as follows: January 2,600 May February 2,450 June March April 2,400 July 2,900 Ace 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 3,120 units, which is consistent with this policy. 3,150 3,300 3,000 Materials cost $15 per unit and are paid for in the month after production. Labour cost is $8 per unit and is paid in the month the cost is incurred. Overhead costs are $15,000 per month. Interest of $9,800 is scheduled to be paid in March, and employee bonuses of $15,000 will be paid in June. a. Prepare a monthly production schedule for January through June. (Enter all values as positive value.) Forecasted unit sales Desired ending inventory Beginning inventory Units to be produced January 2600 Ace Battery Company Production Schedule February 2450 March 2400 April 2900 May 3150 June 3300 b. Prepare a monthly summary of cash payments for January through June. Ace produced 2,400 units in December. July 3000
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