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In: Accounting

The Boswell Corporation forecasts its sales in units for the next four months as follows:   March...

The Boswell Corporation forecasts its sales in units for the next four months as follows:

  March 16,000
  April 18,000
  May 15,500
  June 14,000

Boswell 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 $17,000 per month. Dividends of $21,000 are to be paid in May. Fifteen thousand units were produced in February.

a. Complete a production schedule for March, April, and May. (Enter all values as positive value.)

Boswell Corporation
Production Schedule
March April May June
  Forecasted unit sales            
  Desired ending inventory         
  Beginning inventory         
  
  Units to be produced         

b. Complete a summary of cash payments for March, April, and May.

Boswell Corporation
Cash Payments
February March April May
  Units produced            
  Materials $    $    $   
  Labour         
  Fixed overhead         
  Dividends

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ekkarill92 answered 2 years ago
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