Ernies first important step is budgeting was to develop a production budget and a raw materials schedule for the first quarter of the coming year. Actual sales for the prior October and November were available, and reasonable estimates of sales for December and the first four months of the coming year were made:

Actual Sales	Units
October	1500
November	2300

Expected Sales	Units
December	1800
January	2000
February	2200
March	1900
April

Since there was no established policy on production scheduling, inventory planning, or raw materials inventory, it was necessary to establish one. Burt, George, and Ernie agreed that a policy based on experience would have to wait until some data were collected over the next 6 to 8 months.

In an effort to get things going, they settled on a two-part operational statement of policy:

a)Production in any month should be scheduled so that an ending inventory of Widgets will equal one -half of the next months expected sales.

b) Purchase of raw material should be made so that on average there is enough raw material on hand to produce 700 Widgets . Thus, no end-of-month inventory should have fewer than 700 units of raw material.

Question

1) Prepare a production schedule, schedule of raw material use, and a schedule of raw material purchases for January, February and March.