The Ace Battery Company has forecast its sales in units as follows:

January $2,800$ May $3,350$

February $2,650$ June $3,500$

March $2,600$ July $3,200$

April $3,100$

Ace always keeps an ending inventory equal to $140$ percent of the next month's expected sales. The ending inventory for December $($January$\text{'}$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.$)$

Ace Battery Company

Production Schedule

January February March April May June July

Forecasted unit sales

Desired ending inventory

Beginning inventory

Units to be produced

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

Ace Battery Company

Summary of Cash payments

December January February March April May June

Units produced

Material cost $

$

$

$

$

$

Labour cost

Overhead cost

Interest

Employee bonuses

Total cash payments $

$

$

$

$

$