Question: Wright maintains an ending Inventory for each month in the amount of one and one-half times the expected sales in the following month. The ending

 Wright maintains an ending Inventory for each month in the amount

Wright maintains an ending Inventory for each month in the amount of one and one-half times the expected sales in the following month. The ending Inventory for February (March's beginning Inventory) reflects this policy. Materlals cost $7 per unit and are paid for In the month after production. Labor cost is $3 per unit and is pald for in the month Incurred. Fixed overhead is $10,000 per month. DIvidends of $14,000 are to be pald in May. The firm produced 8,000 units in February. Complete a production schedule and a summary of cash payments for March, Aprll, and May. Remember that production in any one month is equal to sales plus desired ending Inventory minus beginning Inventory. Note: Input all amounts as positlve values except Beginning Inventory values under Production Schedule whlch should be entered with a minus sign. Leave no cells blank be certaln to enter 0 wherever required

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