Reference no: EM132380824

Question :

Bombs Away Video Games Corporation has forecasted the following monthly sales:

January	$101,000	July	$46,000
February	94,000	August	46,000
March	26,000	September	56,000
April	26,000	October	86,000
May	21,000	November	106,000
June	36,000	December	124,000
Total annual sales = $768,000

Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $5 p, unit and costs $2 per unit to produce. A level production policy is followed. Each month's production is equal to annual sales (in units) divided by 12.
 
Of each month's sales, 40 percent are for cash and 60 percent are on account. All accounts receivable are collected in the month after the sale is made.

Construct a monthly production and inventory schedule in units. Beginning inventory in January is 26,000 units.