Question

	Beginning Inventory	Units Produced	Units Sold	Ending Inventory
July	7,000	14,790	5,200	16,590
August	16,590	14,790	10,400	20,980
September	20,980	14,790	22,100	13,670
October	13,670	14,790	25,260	3,200
November	3,200	14,790	15,800	2,190
December	2,190	14,790	9,980	7,000

If the inventory costs $30 per unit and will be financed at the bank at a cost of 0.5 percent per month, what is the monthly financing cost and the total for the six months? Provide the answers in the following table:

	Ending Inventory (# of units)	Total Inventory Cost $	Inventory Financing Cost $
July
August
September
October
November
December
Total Financing Cost

Answer 1

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