Question

5. Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows:

Monthly Unit Sales
March 3,700
April 7,700
May 12,400
June 10,400
34,200 Total units sold

If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup.
  
The production manager thinks the preceding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 34,200 units over four months at a level of 8,550 per month.

a. What is the ending inventory at the end of each month? Compare the unit sales to the units produced and keep a running total.

Ending Inventory

March ___________ units

April ____________units

May ____________units

June ____________units

b. If the inventory costs $12 per unit and will be financed at the bank at a cost of 6 percent, what is the monthly financing cost and the total for the four months? (Use .5 percent as the monthly rate.)

Inventory Financing Cost

March ________________

April ________________

May ________________

June ________________   

Total Financing Cost $_____________

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

| 0 = a = 3 3 4 5 W ? v L 1 ENG 02:49 14-02-2020 26 DG98 - DF DG DH DI DI DK DL DM UNITS SOLD MONTH MARCH APRIL MAY JUNE UNITS CHANGE IN ENDING PRODUCED INVENTORY INVENTORY C =B-A 3700 8550 4850 4850 (4850) 7700 8550 850 5700 [4850 +850) 12400 8550 -3850 1850 [5700-3850] 10400 8550 -1850 0 (1850-1850) MONTH ENDING TOTAL COST INVENTORY INVENTORY 12 PER UNIT FINANCING COST (0.5% PER MONTH) B = A*12 C=B*0.5% 4850 58200 291 5700 68400 342 1850 22200 111 MARCH APRIL MAY JUNE TOTAL FINANCING COST = 99 100 Sheet1 Sheet2 Z SCORE insu pv fv cash opti LINE OF CREDIT eoq miller CARD BANKER ACCEPTANC FACTOR SI DISC FOCAL WC R...