Donna's Fashions Corporation has the followirlg 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 month's expected sales. The ending inventory for December (Janacary's beqlnning Inventory) is 1,200 unis, consistent wRh 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 Datd in March. and emplovee bonuses of $15,500 paid in June.

a. Prepare a monthly production schedule for January ttlrouqh June.

Donna's Fashions Production Schedule February March

June July

April

May E::3

January E:::l E:::3

E::_3

E::3 E:::J

IunR sales Desired ending inventory Beginning inventory

E:3 E::J E:::3

E: E::l

L__:l

E::] E:l E:::l E::3

Units to be produced:

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