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Problem 4-23 Schedule of cash payments [LO4-2] The Volt Battery Company has forecast its sales in units as follows: January 3,000 February 2,850 March 2,800 April 3,300 May 3,550 June 3,700 July 3,400 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 3,600 units, which is consistent with this policy. Materials cost $13 per unit and are paid for in the month after purchase. Labor cost is $6 per unit and is paid in the month the cost is incurred. Overhead costs are $17,000 per month. Interest of $10,200 is scheduled to be paid in March, and employee bonuses of $15,400 will be paid in June. a. Prepare a monthly production schedule for January through June. Volt Battery Company Materials cost $13 per unit and are paid for in the month after purchase. Labor cost is $6 per unit and is paid in the month the cost is incurred. Overhead costs are $17,000 per month. Interest of $10,200 is scheduled to be paid in March, and employee bonuses of $15,400 will be paid in June. a. Prepare a monthly production schedule for January through June. Volt Battery Company Production Schedule February March January April May June July Projected unit sales Desired ending inventory Total units required Beginning inventory Units to be produced 0 0 0 0 0 0 0 0 0 0 0 b. Prepare a monthly summary of cash payments for January through June. Volt Battery produced 2,800 units in December. Volt Battery Company Summary of Cash Payments February March December January April May June Units produced Material cost Labor cost Overhead cost Interest Employee bonuses Total cash payments $ 0 $ 0$ 0 $ 0 $ 0 $ 0