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# The Boswell Corporation forecasts its sales in unit for the next four months:

The Boswell Corporation forecasts its sales in unit for the next four months:
&Acirc;&nbsp;&Acirc;&nbsp;&Acirc;&nbsp;&Acirc;&nbsp;&Acirc;&nbsp;&Acirc;&nbsp;Sales Forecast
March 6,000
April 8,000
May 5,500
June 4,000
Boswell maintains an ending inventory each month in the amount of one-and-one-half times the expected sales for the following month.&Acirc;&nbsp;&Acirc;&nbsp;The ending inventory for February (March's beginning inventory) reflects this policy.&Acirc;&nbsp;&Acirc;&nbsp;Materials cost \$5 per unit and are paid the month following production.&Acirc;&nbsp;&Acirc;&nbsp;Labor cost is \$10 per unit and is paid the month of production.&Acirc;&nbsp;&Acirc;&nbsp;Fixed overhead is \$12,000 per month.&Acirc;&nbsp;&Acirc;&nbsp;Dividends of \$20,000 are paid in May.&Acirc;&nbsp;&Acirc;&nbsp;Five thousand (5,000) units were produced in February.
Produce a production schedule and a summary of cash payments for March, April, and May.&Acirc;&nbsp;&Acirc;&nbsp;Remember that production in any one month is equal to sales plus the desired inventory minus the beginning inventory for the month

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