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The Volt Battery Company has forecast its sales in units as follows Volt Battery always keeps an ending inventory equal to 120 percent of the next months expected sales The ending inventory for

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

Volt Battery 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 purchase. Labor cost is $5 per unit and is paid in the month the cost is incurred. Overhead costs are $6,000 per month. Interest of $8,000 is scheduled to be paid in March, and employee bonuses of $13,200 will be paid in June. Prepare a monthly production schedule and a monthly summary of cash payments for January through June. Volt produced 600 units in December.

Apr 24 2020 View more View Less

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