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The Ace Battery Company has forecast its sales in units as follows: Ace always keeps an ending inventory equal to 1 1 0 percent of
The Ace Battery Company has forecast its sales in units as follows:
Ace always keeps an ending inventory equal to percent of the next month's expected sales. The ending inventory for December
Januarys beginning inventory is units, which is consistent with this policy.
Materials cost $ per unit and are paid for in the month after production. Labour cost is $ per unit and is paid in the month the cost is
incurred. Overhead costs are $ per month. Interest of $ is scheduled to be paid in March, and employee bonuses of
$ will be paid in June.
a Prepare a monthly production schedule for January through June. Enter all values as positive value.
b Prepare a monthly summary of cash payments for January through June. Ace produced units in December.
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