Bambino Sporting goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows;

March 3,250

April 7,250

May 11,500

June 9,500

Total 31,500

If seasonal production is used, it is assumed that inventory will be directly match sales for each month and there will be no inventory buildup

The production manager thinks the preceeding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 31,500 units over 4 months at a level of 7,875 per month.

a. What is the ending inventory at the end of each month?, Compare the units sales to the units produced and keep a running total. ( Leave no cells blank - be certain to enter (0) whenever required.

Ending Inventory

March ...........................Units

April ..........................Units

May .........................Units

June ..........................Units

b. If the inventory cost $12 per unit and will be financed at the bank at a cost of 12%, what is the monthly financing cost and the total for the 4 months? ( Use 1 percnt as the monthly rate). Leave no cells blank - be certain to enter (0) whenever required.

Inventory Financing Cost

March .................................

April ..............................

May ..................................

June ..................................

Total Financing Cost ..................................