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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:The Boswell Corporation forecasts its sales in units for the next four months as follows:
March
April
May
June
16,000
18,000
15,500
14,000
Boswell maintains an ending inventory for each month in the amount of three times the expected sales in the following
month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $8 per unit and
are paid for in the month after production. Labour cost is $12 per unit and is paid for in the month incurred. Fixed
overhead is $17,000 per month. Dividends of $21,000 are to be paid in May. Fifteen thousand units were produced in
February.
a. Complete a production schedule for March, April, and May. (Enter all values as positive value.)
Boswell Corporation
Production Schedule
Forecasted unit sales
Desired ending inventory
Beginning inventory
Units to be produced
March April
b. Complete a summary of cash payments for March, April, and May.
Boswell Corporation
Cash Payments
Units produced
Materials
Labour
Fixed overhead
Dividends
February
March
$
May
April
$
June
May
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