Question

Madonna's Clothiers ses scarves that are very popular in the fal winter season t okare anticipated as follows seasonal production is used tis assumed the inventory will rectly match sales to ach month and there will be no t ory The bouction enter think the bove chance He will produce the 100 n statimistic and deres to a with wet poduction to avoid being out of stalo 3.175 month Whos the ondevemory at the end of the compare the sold to the creduced tomato the table below (Do not leave any moty cesnauts werever it is required Negative values should be indicated by minus sign) Han's Clothes

Answer 1

Solution: c 1725 Units sold units produced b 1450 3175 2450 3175 4900 3175 3900 3175 Oct Nov Dec Jan Ending inventory d=a+b-c 1725 units 2450 units 725 units units 725 -1725 -725 1 138 Ending inventory Total inventory cost Inventory financing cost la b=a*8 c=b*1% Oct 1725 13800 Nov 2450 19600 196 5800 58 00 Total financing cost 392 Dec 725 Jan