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

January	3,300		May	3,850
February	3,150		June	4,000
March	3,100		July	3,700
April	3,600

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 3,460 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 $18,500 per month. Interest of $10,500 is scheduled to be paid in March, and employee bonuses of $15,700 will be paid in June.

a.	Prepare a monthly production schedule for January through June.(Negative 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 3,100 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		$	$	$	$