The Volt Battery Company has forecast its sales in units as follows: January February March April May June July 1,000 850 888 1,300 1,550 1,700 1,480 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 1,200 units, which is consistent with this policy. Materials cost $11 per unit and are paid for in the month after purchase. Labor cost is $4 per unit and is paid in the month the cost incurred. Overhead costs are $7,000 per month. Interest of $8,200 is scheduled to be paid in March, and employee bonuses of $13,400 will be paid in June. a. Prepare a monthly production schedule for January through June. Note: Input all amounts as positive values except Beginning Inventory values under Production Schedule which should be entered with a minus sign. Leave no cells blank be certain to enter O wherever required. Projected unit sales Desired ending inventory Total units required Beginning inventory Units to be produced January Units produced Material cost Labor cost Overhead cost Interest Employee bonuses Total cash payments 0 December 0 Volt Battery Company Production Schedule March February S January 0 0 0 S April Volt Battery Company Summary of Cash Payments February March 0 S 0 0 b. Prepare a monthly summary of cash payments for January through June. Volt Battery produced 800 units in December. May 0 0 S June April 0 0 S 0 July May S June
The Volt Battery Company has forecast its sales in units as follows: January February March April May June July 1,000 850 888 1,300 1,550 1,700 1,480 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 1,200 units, which is consistent with this policy. Materials cost $11 per unit and are paid for in the month after purchase. Labor cost is $4 per unit and is paid in the month the cost incurred. Overhead costs are $7,000 per month. Interest of $8,200 is scheduled to be paid in March, and employee bonuses of $13,400 will be paid in June. a. Prepare a monthly production schedule for January through June. Note: Input all amounts as positive values except Beginning Inventory values under Production Schedule which should be entered with a minus sign. Leave no cells blank be certain to enter O wherever required. Projected unit sales Desired ending inventory Total units required Beginning inventory Units to be produced January Units produced Material cost Labor cost Overhead cost Interest Employee bonuses Total cash payments 0 December 0 Volt Battery Company Production Schedule March February S January 0 0 0 S April Volt Battery Company Summary of Cash Payments February March 0 S 0 0 b. Prepare a monthly summary of cash payments for January through June. Volt Battery produced 800 units in December. May 0 0 S June April 0 0 S 0 July May S June
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The Volt Battery Company has forecast its sales in units as follows:
January
February
March
April
May
June
July
1,000
850
800
1,300
1,550
1,700
1,400
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 1,200 units, which is consistent with this policy.
Materials cost $11 per unit and are paid for in the month after purchase. Labor cost is $4 per unit and is paid in the month the cost is
incurred. Overhead costs are $7,000 per month. Interest of $8,200 is scheduled to be paid in March, and employee bonuses of
$13,400 will be paid in June.
a. Prepare a monthly production schedule for January through June.
Note: Input all amounts as positive values except Beginning Inventory values under Production Schedule which should be
entered with a minus sign. Leave no cells blank be certain to enter O wherever required.
Projected unit sales
Desired ending inventory
Total units required
Beginning inventory
Units to be produced
January
Units produced
Material cost
Labor cost
Overhead cost
Interest
Employee bonuses
Total cash payments
0
December
0
Volt Battery Company
Production Schedule
March
$
February
0
January
0
0
0
0 $
April
Volt Battery Company
Summary of Cash Payments
February
March
$
0
0
May
b. Prepare a monthly summary of cash payments for January through June. Volt Battery produced 800 units in December.
0
0 $
0
June
April
0
$
0
July
May
0
S
June
0
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It said these were wrong.
Transcribed Image Text:Projected unit sales
Desired ending inventory
Total units required
Beginning inventory
Units to be produced
January
Units produced
Material cost
Labor cost
Overhead cost
Interest
Employee bonuses
Total cash payments
1,000✔
1,200 x
2,200
1,200✔
1,000
December
800✔
$
> Answer is complete but not entirely correct.
Volt Battery Company
Production Schedule
$
February
850✔
1,020 X
1,870
1,200 X
670
January
1,000 X
11,000 $
4,000 X
7,000 ✓
22,000
March
800✔
960 x
1,760
1,020 X
740
$
670 X
7,370 × $
2,680 X
7,000 ✓
April
b. Prepare a monthly summary of cash payments for January through June. Volt Battery produced 800 units in December.
17,050
1,300✔
$
1,560 x
2,860
960 x
1,900
›×
X Answer is complete but not entirely correct.
Volt Battery Company
Summary of Cash Payments
February
March
740 X
8,140 x $
2,960 x
7,000✔
8,200✔
26,300
May
$
1,550 ✔
1,860 X
3,410
1,560 X
1,850
April
June
1,900 X
20,900 × $
7,600 X
7,000✔
35.500 $
1,700✔
2,040 X
3,740
1,860 X
1,880
May
1,850 X
20,350 × $
7,400 X
7,000 ✓
34,750
July
1,400
I$
June
1,880 X
20,680 X
7,520 X
7,000✔
13,400✔
48,600
Solution
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