The Volt Battery Company has forecast its sales in units as follows: January 1,100 February 950 March 900 April 1,400 May 1,650 June 1,800 July 1,500
The Volt Battery Company has
| January | 1,100 |
| February | 950 |
| March | 900 |
| April | 1,400 |
| May | 1,650 |
| June | 1,800 |
| July | 1,500 |
Volt Battery 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 purchase. Labor cost is $5 per unit and is paid in the month the cost is incurred.
a. Prepare a monthly production schedule for January through June.
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The manufacturing company needs materials, labor, and expenses for the production process.
Thus, the total prime cost is plays a crucial role in the estimation of sales units. Thus, the management should be organizing the high policies and transparent activities. It will helps in the growth of the company.
For better results, the company can make monthly budgets and monthly production schedule in order to achieve their targets and goals.
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