Reference no: EM132583804

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

January1,900

May2,450

February1,750

June2,600

March1,700

July2,300

April2,200

• Ace always keeps an ending inventory equal to 130 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 2,470 units, which is consistent with this policy.
• Materials cost $14 per unit and are paid for in the month after production. Labour cost is $7 per unit and is paid in the month the cost is incurred. Overhead costs are $11,500 per month. Interest of $9,100 is scheduled to be paid in March, and employee bonuses of $14,300 will be paid in June.

Question a. Prepare monthly production schedule for January through June. (Enter all values as positive value.)

Question b. Prepare monthly summary of cash payments for January through June. Ace produced 1,700 units in December.