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Antonio Banderos & Scarves sells headwear that is very popular in the fall-winter season. Units sold are anticipated as follows: If seasonal production is used,
Antonio Banderos \& Scarves sells 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. The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out of merchandise. She will produce the 14,500 items at a level of 3,625 per month. a. What is the ending inventory at the end of each month? Compare the units sold to the units produced and keep a running total. (Do not leave any empty spaces; input a 0 wherever it is required. Negative values should be indicated by a minus sign.) b. If the inventory costs $8 per unit and will be financed through the bank at 12 percent per annum, what is the monthly financing cost and the total for the four months? (Round your intermediate calculations and final answers to 2 decimal places. Do not leave any empty spaces; input a 0 wherever it is required.)
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