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

January	2,500		May	3,050
February	2,350		June	3,200
March	2,300		July	2,900
April	2,800

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 2,750 units, which is consistent with this policy. Materials cost $14 per unit and are paid for in the month after purchase. Labor cost is $7 per unit and is paid in the month the cost is incurred. Overhead costs are $14,500 per month. Interest of $9,700 is scheduled to be paid in March, and employee bonuses of $14,900 will be paid in June.

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

b. Prepare a monthly summary of cash payments for January through June. Volt produced 2,300 units in December.

Volt Battery Company Summary of Cash Payments January February March April May June July Projected unit sales Desired ending inventory Total units required Beginning inventory Units to be produced Volt Battery Company Summary of Cash Payments December January February March April May June Units produced Material cost Labor cost Overhead cost Interest Employee bonuses Total cash payments