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

March- 3,450

April- 7,450

May- 11,900

June- 9,900

Total- 32,700 total units sold

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 32,700 units over 4 months at a level of 8,175 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 $16 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 1.0 percent 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 ..................................