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

January	2,100		May	2,650
February	1,950		June	2,800
March	1,900		July	2,500
April	2,400

Volt Battery always keeps an ending inventory equal to 110% of the next months expected sales. The ending inventory for December (Januarys beginning inventory) is 2,260 units, which is consistent with this policy. Materials cost $10 per unit and are paid for in the month after purchase. Labor cost is $3 per unit and is paid in the month the cost is incurred. Overhead costs are $12,500 per month. Interest of $9,300 is scheduled to be paid in March, and employee bonuses of $14,500 will be paid in June.

a. Prepare a monthly production schedule for January through June.

	January	February	March	April	May	June	July
Projected unit sales
Desired ending inventory
Total units required
Beginning inventory
Units to be produced

b. Prepare a monthly summary of cash payments for January through June. Volt produced 1,900 units in December.

	December	January	February	March	April	May	June
Units produced
Material cost
Labor cost
Overhead cost
Interest
Employee bonuses
Total cash payments