Question
The Boswell Corporation forecasts its sales in units for the next four months as follows: March 10,000 April 12,000 May 9,500 June 8,000 Boswell maintains
The Boswell Corporation forecasts its sales in units for the next four months as follows: March 10,000 April 12,000 May 9,500 June 8,000 Boswell maintains an ending inventory for each month in the amount of two and one-half times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $7 per unit and are paid for in the month after production. Labor cost is $11 per unit and is paid for in the month incurred. Fixed overhead is $14,000 per month. Dividends of $20,400 are to be paid in May. Nine thousand units were produced in February. a. Complete a production schedule for March, April, and May.
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