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

January	2,400		May	2,950
February	2,250		June	3,100
March	2,200		July	2,800
April	2,700

Volt Battery always keeps an ending inventory equal to 140% of the next months expected sales. The ending inventory for December (Januarys beginning inventory) is 3,360 units, which is consistent with this policy.

Materials cost $13 per unit and are paid for in the month after purchase. Labor cost is $6 per unit and is paid in the month the cost is incurred. Overhead costs are $14,000 per month. Interest of $9,600 is scheduled to be paid in March, and employee bonuses of $14,800 will be paid in June.

a.	Prepare a monthly production schedule for January through June. (Subtracted amounts should be indicated by a minus sign.)

Volt Battery Company Production Schedule
	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 2,200 units in December.

Summary Of Cash Payments
	December	January	February	March	April	May	June
Units produced
Payments:
Material cost		$	$	$	$	$	$
Labor cost
Overhead cost
Interest
Employee bonuses
Total cash payments		$	$	$	$	$	$