Donnas Fashions Corporation has the following sales forecast in units: January 1,000; February 800; March 900; April 1,400; May 1,550; June 1,800; July 1,400 Donna always keeps ending inventory equal to 120 percent of the next months expected sales. The ending inventory for December (Januarys beginning inventory) is 1,200 units, consistent with company policy. Materials cost $14 per unit and are paid for in the month after production. Labour cost is $7 per unit and is paid in same month the cost is incurred. Overhead costs are $8,000 per month. Interest of $10,000 will be paid in March, and employee bonuses of $15,500 paid in June. Enter all values as positive value. a. Prepare a monthly production schedule for January through June.

Donnas Fashions Production Schedule
	January	February	March	April	May	June	July
Forecasted unit sales
Desired ending inventory
Beginning inventory
Units to be produced

b. Prepare a monthly summary of cash payments for January through June. Donna produced 800 units in December.

Donnas Fashions Summary of Cash payments
	December	January	February	March	April	May	June
Units produced
Material cost		$	$	$	$	$	$
Labour cost
Overhead cost
Interest
Employee bonuses
Total cash payments		$	$	$	$	$	$