Bambino Sporting Goods makes exceptional gloves that sell well in the spring and early summer season. A projection of units sold is as follows:

March3,700April7,700May12,400June10,40034,200

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. He will produce the 34,200 items at a level of 8,550 per month.

a.What is the ending inventory at the end of each month? Compare the units sold to the units produced and complete the table below.(Do not leave any empty spaces; input a 0 wherever it is required. Enter all values as positive value.)

Bambino Sporting GoodsUnits

soldUnits ProducedChange in inventoryEnding

inventoryMarchAprilMayJune

b.If the inventory costs $12 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?(Do not leave any empty spaces; input a 0 wherever it is required.)

Inventory

financing costMarch$AprilMayJuneTotal financing cost$