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Wright Lighting Fixtures forecasts its sales in units for the next four months as follows:
March
7,000
April
9,000
May
6,500
June
5,000
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. Materials cost $4 per unit and are paid for in the month after production. Labor cost is $8 per unit and is paid for in the month incurred. Fixed overhead is $12,500 per month. Dividends of $20,100 are to be paid in May. The firm produced 6,000 units in February.
Generate production schedule and a summary of cash payments for March, April, and May. Remember that production in any one month is equal to sales plus desired ending inventory minus beginning inventory
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