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

January	1,200		May	1,750
February	1,050		June	1,900
March	1,000		July	1,600
April	1,500

Ace always keeps an ending inventory equal to 140 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 1,680 units, which is consistent with this policy.

Materials cost $13 per unit and are paid for in the month after production. Labour cost is $6 per unit and is paid in the month the cost is incurred. Overhead costs are $8,000 per month. Interest of $8,400 is scheduled to be paid in March, and employee bonuses of $13,600 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. Aceproduced 1,000 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		$	$	$	$	$	$