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

Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows: Monthly Unit Sales March April May June 3,800 7,800 12,600 10,600 34,800 Total units sold 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 preceding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 34,800 units over four months at a level of 8,700 per month. a. What is the ending inventory at the end of each month? Compare the unit sales to the units produced and keep a running total. Ending Inventory units units unils units March April June b. If the inventory costs $16 per unit and will be financed at the bank at a cost of 6 percent, what is the monthly financing cost and the total for the four months? (Use .5 percent as the monthly rate.) Financing Cost March pail May Total financing cost