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

The Volt Battery Company has forecast its sales in units as follows: Jan- 800 May- 1,350 Feb- 650 June- 1,500 March- 600 July- 1,200 April- 1,100 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 960 units, which is consistent with this policy. Labor cost is $5 per unit and is paid in the month the cost is incurred. Overhead costs are $6,000 per month. Interest of $8,000 is scheduled to be paid in March. Prepare a monthly production schedule. Volt produced 600 units in December NOTE: This question is NOT our property; we are only suggesting solution of this question.

Click here for the SOLUTION

This entry was posted in Homework Help. Bookmark the permalink.

Comments are closed.