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

 

     January2,200 May2,750February2,050 June2,900March2,000 July2,600April2,500   

 

Volt Battery always keeps an ending inventory equal to 120% of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 2,640 units, which is consistent with this policy.

  

Materials cost $11 per unit and are paid for in the month after purchase. Labor cost is $4 per unit and is paid in the month the cost is incurred. Overhead costs are $13,000 per month. Interest of $9,400 is scheduled to be paid in March, and employee bonuses of $14,600 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 2,000 units in December.

  

 

rev: 02_14_2018_QC_CS-117860