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

January	2,300		May	2,850
February	2,150		June	3,000
March	2,100		July	2,700
April	2,600

Ace always keeps an ending inventory equal to 130 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 2,990 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 $13,500 per month. Interest of $9,500 is scheduled to be paid in March, and employee bonuses of $14,700 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 2,100 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		$	$	$	$	$	$