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

October	1,800
November	2,800
December	5,600
January	4,600
	14,800	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 14,800 items over four months at a level of 3,700 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 $6 per unit and will be financed at the bank at a cost of 12 percent, what is the monthly financing cost and the total for the four months? (Use 1 percent or the monthly rate.) (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

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