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

 

          January 3,200   May 3,750 February 3,050   June 3,900 March 3,000   July 3,600 April 3,500        

Volt Battery always keeps an ending inventory equal to 140% of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 4,480 units, which is consistent with this policy.

Materials cost $15 per unit and are paid for in the month after purchase. Labor cost is $8 per unit and is paid in the month the cost is incurred. Overhead costs are $18,000 per month. Interest of $10,400 is scheduled to be paid in March, and employee bonuses of $15,600 will be paid in June.

Volt Battery CompanySummary of Cash PaymentsJanuary| FebruaryMarchAprilMayJuneJulyProjected unit sales*Desired ending Inventory*Total units requiredBeginning Inventory1010Units to be produced6. Prepare a monthly summary of cash payments for January through June . Volt produced 3, 000 units in December *Volt Battery CompanySummary of Cash PaymentsDecember January| FebruaryMarchAprilMayJuneUnits producedMaterial costLabor costOverhead costInterestEmployee bonuses$ 10$ 1 0Total cash payments$0| $