January 1,100 May 1,6501,800FebruaryMarchApril950 June900 July1,5001,400Ace 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 1,430 units, which is consistent with this policy.Materials cost $12 per unit and are paid for in the month after production. Labour cost is $5 per unit and is paid in the month the cost isincurred. Overhead costs are $7,500 per month. Interest of $8,300 is scheduled to be paid in March, and employee bonuses of$13,500 will be paid in June,a. Prepare a monthly production schedule for January through June. (Enter all values as positive value.)Ace Battery CompanyProduction ScheduleForecasted unit salesDesired ending inventoryBeginning inventoryUnits to be producedUnits producedMaterial costLabour costOverhead costInterestEmployee bonusesJanuaryTotal cash paymentsFebruaryDecemberJanuaryLAb. Prepare a monthly summary of cash payments for January through June. Ace produced 900 units in December.Ace Battery CompanySummary of Cash paymentsFebruaryMarch$MarchLAApril11LAMay[TOJuneAprilBAMayJulyJune][

The formula used to determine the units produced is as follows:Units to be produced = Expected Sales…

January 1,100 May February 950 June March April 900 July 1,400 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 1,430 units, which is consistent with this policy. 1,650 1,800 1,500 Materials cost $12 per unit and are paid for in the month after production. Labour cost is $5 per unit and is paid in the month the cost is ncurred. Overhead costs are $7,500 per month. Interest of $8,300 is scheduled to be paid in March, and employee bonuses of $13,500 will be paid in June. . Prepare a monthly production schedule for January through June. (Enter all values as positive value.) Ace Battery Company Production Schedule Forecasted unit sales Desired ending inventory Beginning inventory Units to be produced Units produced Material cost Labour cost Overhead cost Interest Employee bonuses Total cash payments January December February January $ . Prepare a monthly summary of cash payments for January through June. Ace produced 900 units in December. Ace Battery Company Summary of Cash payments February March $ March $ April May $ April June $ $ May July $ June

January 1,100 May February 950 June March April 900 July 1,400 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 1,430 units, which is consistent with this policy. 1,650 1,800 1,500 Materials cost $12 per unit and are paid for in the month after production. Labour cost is $5 per unit and is paid in the month the cost is ncurred. Overhead costs are $7,500 per month. Interest of $8,300 is scheduled to be paid in March, and employee bonuses of $13,500 will be paid in June. . Prepare a monthly production schedule for January through June. (Enter all values as positive value.) Ace Battery Company Production Schedule Forecasted unit sales Desired ending inventory Beginning inventory Units to be produced Units produced Material cost Labour cost Overhead cost Interest Employee bonuses Total cash payments January December February January $ . Prepare a monthly summary of cash payments for January through June. Ace produced 900 units in December. Ace Battery Company Summary of Cash payments February March $ March $ April May $ April June $ $ May July $ June

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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