Antonio Banderos & Scarves makes headwear that is very popular in the fall-winter season. Units sold are anticipated as:

October	1,550
November	2,550
December	5,100
January	4,100
	13,300	units

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 13,300 items over four months at a level of 3,325 per month.

(a)	What is the ending inventory at the end of each month? (Leave no cells blank - be certain to enter "0" wherever required.)

	Ending inventory
October
November
December
January

(b)

If the inventory costs $4 per unit and will be financed at the bank at a cost of 12 percent, what is the monthly financing cost and the total for the four months? (Use 1 percent or the monthly rate.) (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

	Inventory financing cost
October	$
November
December
January
Total financing cost	$