Answer Happy

The Ace Battery Company has forecast its sales in units as follows: January see May 1,350 February 650 June 1,500 March 600 July 1,200 April 1,100. 4 Ace always keeps an ending inventory equal to 120 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 960 units, which is consistent with this policy Materials cost $12 per unit and are paid for in the month after proction. Labour cost is $5 per unit and is paid in the month the cost is incurred. Overhead costs are $6,000 per month. Interest of $8,00 is scheduled to be paid in March, and employee bonuses of $13,200 will be paid in June. a. Prepare a monthly production schedule for January through June. (Enter all values as positive value.)

a. Prepare a monthly production schedule for January through June. (Enter all values as positive value.) Ace Battery Company Production Schedule March Forecasted unit sales Desired ending inventory Beginning inventory Units to be produced January February April May June July

Prepare a monthly summary of cash payments for January through June. Ace produced 600 units in December. Ace Battery Company Summary of Cash payments February Units produced Material cost Labour cost Overhead cost Interest Employee bonuses Total cash payments December January $ $ March $ April $ May