Question

In: Finance

The Volt Battery Company has forecast its sales in units as follows: January 3,200 May 3,750...

The Volt Battery Company has forecast its sales in units as follows:

January 3,200 May 3,750
February 3,050 June 3,900
March 3,000 July 3,600
April 3,500

Volt Battery always keeps an ending inventory equal to 140% of the next month’s expected sales. The ending inventory for December (January’s beginning inventory) is 4,480 units, which is consistent with this policy.
  
Materials cost $15 per unit and are paid for in the month after purchase. Labor cost is $8 per unit and is paid in the month the cost is incurred. Overhead costs are $18,000 per month. Interest of $10,400 is scheduled to be paid in March, and employee bonuses of $15,600 will be paid in June.

a. Prepare a monthly production schedule for January through June.

Volt Battery Company
Summary of Cash Payments
January February March April May June July
Projected unit sales
Desired ending inventory
Total units required 0 0 0 0 0 0
Beginning inventory
Units to be produced 0 0 0 0 0 0

b. Prepare a monthly summary of cash payments for January through June. Volt produced 3,000 units in December.

Volt Battery Company
Summary of Cash Payments
December January February March April May June
Units produced
Material cost
Labor cost
Overhead cost
Interest
Employee bonuses
Total cash payments $0 $0 $0 $0 $0 $0

Solutions

Expert Solution

SEE THE SCREENSHOT. ANY DOUBTS, HAPPY TO HELP YOU. THANK YOU. THUMBS UP PLEASE.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

The Ace Battery Company has forecast its sales in units as follows:   January 1,900 May 2,450...
The Ace Battery Company has forecast its sales in units as follows:   January 1,900 May 2,450   February 1,750 June 2,600   March 1,700 July 2,300   April 2,200 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 2,470 units, which is consistent with this policy. Materials cost $14 per unit and are paid for in the month after production. Labour cost is $7 per unit and...
Wheat Inc. has forecast its sales for the coming months as follows: Standard Units Deluxe Units...
Wheat Inc. has forecast its sales for the coming months as follows: Standard Units Deluxe Units April 110 70 May 126 87 June 143 94 July 160 108 Wheat maintains finished goods inventory equal to 30% of the next month’s sales requirements. April 1 inventories were 33 standard units and 21 deluxe. Required: Prepare a production schedule for April through June. (Round your answers to the nearest whole number and use rounded values for your intermediate calculations.)
Battery capacity is sometimes given in units of Amp-Hr. If a 9 volt battery has a...
Battery capacity is sometimes given in units of Amp-Hr. If a 9 volt battery has a capacity of 500 milliAmps-hr's, how long would it take for each resistive circuit to discharge the whole 9V battery? Hint: 500 mAmps-hr essentially means it can maintain a 500 mAmp discharge from 1 hour only.
• It is now the beginning of January • Sales are forecast at 100,000 units for...
• It is now the beginning of January • Sales are forecast at 100,000 units for January, 130,000 units for February, and 150,000 units for March. • Ending inventory of finished product should be 20% of next month’s sales. • Each unit of finished product requires 0.5 lb. of materials. • Ending inventory of materials should be 10% of next month’s production needs. • Beginning inventory of finished product is 22,000 units. • Beginning inventory of materials is 5,500 lbs....
Sales Budget XYZ Company 2018 sales forecast is as follows: Quarter 1: 7,000 Product Ace units....
Sales Budget XYZ Company 2018 sales forecast is as follows: Quarter 1: 7,000 Product Ace units. Quarter 2: 9,000 Product Ace units. Quarter 3: 10,000 Product Ace units. Quarter 4: 12,000 Product Ace units Each unit sells for $60 Production Budget The January 1, 2018 beginning inventory of Product Ace is 4,000 units. Management desires an ending inventory each quarter equal to 30% of the next Quarter's sales. Sales in the first and second quarter of 2019 are expected to...
Walnut has forecast sales for the next three months as follows: July 4,700 units, August 6,900...
Walnut has forecast sales for the next three months as follows: July 4,700 units, August 6,900 units, September 8,000 units. Walnut's policy is to have an ending inventory of 50% of the next month's sales needs on hand. July 1 inventory is projected to be 2,100 units. Selling and administrative costs are budgeted to be $16,000 per month plus $14 per unit sold. What are budgeted selling and administrative expenses for July? $143,500 $77,300 $84,700 $81,800
1.   Sales forecast: January: 2,600 units; February: 4,500 units; March: 10,200 units; April: 12,000 units. The...
1.   Sales forecast: January: 2,600 units; February: 4,500 units; March: 10,200 units; April: 12,000 units. The unit sales price is $125. All sales are on credit and collections are 30% in the month of sale, 60% the following month, and 10% two months following the sale. Accounts receivable as of the end of December is $4,600 and this amount is expected to be collected in January. 2. End of month inventory must equal 40% of next month’s sales. The inventory...
1.   Sales forecast: January: 2,600 units; February: 4,500 units; March: 10,200 units; April: 12,000 units. The...
1.   Sales forecast: January: 2,600 units; February: 4,500 units; March: 10,200 units; April: 12,000 units. The unit sales price is $125. All sales are on credit and collections are 30% in the month of sale, 60% the following month, and 10% two months following the sale. Accounts receivable as of the end of December is $4,600 and this amount is expected to be collected in January. 2. End of month inventory must equal 40% of next month’s sales. The inventory...
Question: Transfer Pricing The Battery Division of Parker Company makes a standard 12 -volt battery. The...
Question: Transfer Pricing The Battery Division of Parker Company makes a standard 12 -volt battery. The Division has the following data: Production capacity (number of batteries) 200,000 Selling price per battery to outsiders       $ 50 Variable costs per battery $20 Fixed costs per battery (based on capacity)   $ 7 Parker Company has a Vehicle Division that could use this battery in its forklift trucks. The Vehicle Division is now buying 100.000 batteries per year from an outside supplier at $48 per...
Information for 2020: 1.   Sales forecast: January: 2,600 units; February: 4,500 units; March: 10,200 units; April:...
Information for 2020: 1.   Sales forecast: January: 2,600 units; February: 4,500 units; March: 10,200 units; April: 12,000 units. The unit sales price is $125. All sales are on credit and collections are 30% in the month of sale, 60% the following month, and 10% two months following the sale. Accounts receivable as of the end of December is $4,600 and this amount is expected to be collected in January. 2. End of month inventory must equal 40% of next month’s...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT