Hawaiian Breeze Limited forecasts its sales in units for the next four months as follows: March April May June 11,000 13,000 10,500 9,000 Hawaiian Breeze maintains an ending inventory for each month in the amount of three times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $8 per unit and are paid for in the month after production. Labour cost is $12 per unit and is paid for in the month incurred. Fixed overhead is $14,500 per month. Dividends of $20,500 are to be paid in May. Ten thousand units were produced in February. a. Complete a production schedule for March, April, and May. (Enter all values as positive value.) Forecasted unit sales Desired ending inventory Beginning inventory Units to be produced Units produced Materials Labour Fixed overhead Dividends Hawaiian Breeze Limited Production Schedule March Total cash payments. 11000 39000 33000 b. Complete a summary of cash payments for March, April, and May. February April Hawaiian Breeze Limited Cash Payments $ 13000 31500 29000 $ March $ May 10500 27000 27000 April $ June 9000 May

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Hawaiian Breeze Limited forecasts its sales in units for the next four months as follows:
March
April
May
June
11,000
13,000
10,500
9,000
Hawaiian Breeze maintains an ending inventory for each month in the amount of three times the expected sales in the following
month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $8 per unit and are paid for
in the month after production. Labour cost is $12 per unit and is paid for in the month incurred. Fixed overhead is $14,500 per month.
Dividends of $20,500 are to be paid in May. Ten thousand units were produced in February.
a. Complete a production schedule for March, April, and May. (Enter all values as positive value.)
Forecasted unit sales
Desired ending inventory
Beginning inventory
Units to be produced
Units produced
Materials
Labour
Fixed overhead
Dividends
Hawaiian Breeze Limited
Production Schedule
March
Total cash payments
11000
39000
33000
b. Complete a summary of cash payments for March, April, and May.
April
February
13000
31500
29000
Hawaiian Breeze Limited
Cash Payments
$
March
$
$
May
10500
27000
27000
April
$
$
June
9000
May
Transcribed Image Text:Hawaiian Breeze Limited forecasts its sales in units for the next four months as follows: March April May June 11,000 13,000 10,500 9,000 Hawaiian Breeze maintains an ending inventory for each month in the amount of three times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $8 per unit and are paid for in the month after production. Labour cost is $12 per unit and is paid for in the month incurred. Fixed overhead is $14,500 per month. Dividends of $20,500 are to be paid in May. Ten thousand units were produced in February. a. Complete a production schedule for March, April, and May. (Enter all values as positive value.) Forecasted unit sales Desired ending inventory Beginning inventory Units to be produced Units produced Materials Labour Fixed overhead Dividends Hawaiian Breeze Limited Production Schedule March Total cash payments 11000 39000 33000 b. Complete a summary of cash payments for March, April, and May. April February 13000 31500 29000 Hawaiian Breeze Limited Cash Payments $ March $ $ May 10500 27000 27000 April $ $ June 9000 May
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