Reference no: EM132750427

Bombs Away Video Games Corporation has forecasted the following monthly sales:

January $ 114,000 July $ 59,000 February 107,000 August 59,000 March 39,000 September 69,000 April 39,000 October 99,000 May 34,000 November 119,000 June 49,000 December 137,000 Total annual sales = $924,000

Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $5 per unit and costs $2 per unit to produce. A level production policy is followed. Each month's production is equal to annual sales (in units) divided by 12.

Of each month's sales, 20 percent are for cash and 80 percent are on account. All accounts receivable are collected in the month after the sale is made.

Problem a. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 39,000 units.