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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. Note: Leave no cells blank be certain to enter ' O ' wherever required. b. If the inventory costs $8 per unit and will be financed at the bank at a cost of 12 percent, what is the monthily financing cost and the total for the four months? (Use 1 percent as the monthly rate.) Note: Leave no cells blank be certain to enter ' O ' wherever required. 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. Note: Leave no cells blank be certain to enter ' O ' wherever required. Problem 6-5 (Algo) Level versus seasonal production [LO6-1] Antonio Banderos \& Scarves makes headwear that is very popular in the fall-winter season. Units sold are anticipated as follows: If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. However, Antonio decides to go with level production to avoid being out of merchandise. He will produce the 15,700 items over four months at a level of 3,925 per month. Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows: 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 avold being out of merchandise. He will produce the 33,600 units over four months at a level of 8,400 per month. b. If the inventory costs $20 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 0.5 percent as the monthly rate.) Note: Leave no cells blank be certain to enter ' O ' wherever required