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

January2,600

May3,150

February2,450

June3,300

March2,400J

July3,000

April2,900

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.

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

Ace Battery Company

Production ScheduleJanuary February March April May June July

Forecasted unit sales

Desired ending inventory

Beginning inventory

Units to be produced

b. a monthly summary of cash payments for January through June. Aceproduced 2,400 units in December.

Ace Battery Company

Summary of Cash paymentsDecemberJanuaryFebruary march April May June

Units produced

Material cost

Labour cost

Overhead cost

Interest

Employee bonuses

Total cash payments

c. Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales.

March$50,000June$54,000April56,000July62,000May45,000August64,000

Sales in January and February were $53,000 and $52,000 respectively.

Experience has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale.

Of the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of August? How much of this is expected to be collected later?

AmountUncollected$

Expected to be collected$