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

October $1,000$

November $2,000$

December $4,000$

January $3,000$

$10,000$

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 $10,000$ items at a level of $2,500$ 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.$)$

Antonio Banderos & Scarves

Units sold Units Produced Change in inventory Ending

inventory

October

November

December

January

b$.$ If the inventory costs $$5$ per unit and will be financed through the bank at $6$ 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.$)$

Financing cost

October $

November

December

January

Total financing cost $