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The Boswell Corporation forecasts its sales in units for the next four months as follows: March April May June 11,000 13,000 10,500 9,000 Boswell
The Boswell Corporation forecasts its sales in units for the next four months as follows: March April May June 11,000 13,000 10,500 9,000 Boswell maintains an ending inventory for each month in the amount of three times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $8 per unit and are paid for in the month after production. Labour cost is $12 per unit and is paid for in the month incurred. Fixed overhead is $14,500 per month. Dividends of $20,500 are to be paid in May. Ten thousand units were produced in February. a. Complete a production schedule for March, April, and May. (Enter all values as positive value.) Forecasted unit sales Desired ending inventory Beginning inventory Units to be produced Boswell Corporation Production Schedule March April May June b. Complete a summary of cash payments for March, April, and May. Boswell Corporation Units produced Materials Labour Fixed overhead Dividends Total cash payments Cash Payments February March $ $ $ April May $
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