Homework Help is Here – Start Your Trial Now!
Business
Finance
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

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...
See similar textbooks
icon
Related questions
Question
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
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

It said these were wrong.

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
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
Bartleby Expert
SEE SOLUTION
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS