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

January1,000May1,550February850June1,700March800July1,400April1,300

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 1,200 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 $7,000 per month. Interest of $8,200 is scheduled to be paid in March, and employee bonuses of $13,400 will be paid in June.

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

Ace Battery Company

Production ScheduleJanuaryFebruaryMarchAprilMayJuneJulyForecasted unit salesDesired ending inventoryBeginning inventoryUnits to be produced

b.find monthly summary of cash payments for January through June. Aceproduced 800 units in December.