Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

The Ace Battery Company has forecastils sales in units as follows: January February Minch April 900 May 750 Dune 700 July 1.200 1.450 3. 1,300

image text in transcribed
image text in transcribed
The Ace Battery Company has forecastils sales in units as follows: January February Minch April 900 May 750 Dune 700 July 1.200 1.450 3. 1,300 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 990 units, which is consistent with this policy Materials cost $10 per unit and are paid for in the month after production, Labour cost is $3 per unit and is paid in the month the cost is Incurred. Overhead costs are $6.500 per month. Interest of $8100 is scheduled to be paid in March, and employee bonuses of $13.300 will be paid in June. a. Prepare a monthly production schedule for January through June. (Enter all values as positive volue.) Ace Battery Company Production Schedule February March January 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 700 units in December Ace Battery Company Ce costs are $6,500 per month. Interest of $8,100 is scheduled to be paid in March, and employee bonuses of $13,300 will be paid in June FRETE o. Prepare a monthly production schedule for January through June. (Enter all values os positive value.) Ace Battery Company Production Schedule February March January April May Pune July Forecasted unit sales Desired ending inventory Beginning inventory LLLLLL Units to be produced b. Prepare a monthly summary of cash payments for January through June. Ace produced 700 units in December Ace Battery Company Summary of Cash payments February March December January April Hay $ $ $ 5 Units produced Material cost Labour cost Overhead cost Interest Employee bonuses Total cash payments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Students explore these related Accounting questions