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

January	1,700		May	2,250
February	1,550		June	2,400
March	1,500		July	2,100
April	2,000

Ace always keeps an ending inventory equal to 110 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 1,870 units, which is consistent with this policy.

Materials cost $12 per unit and are paid for in the month after production. Labour cost is $5 per unit and is paid in the month the cost is incurred. Overhead costs are $10,500 per month. Interest of $8,900 is scheduled to be paid in March, and employee bonuses of $14,100 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 1,500 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		$	$	$	$	$	$