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Fashion sell scarves that are very popular in the fall winter season units sold our anticipated hours october - 2000 november- 4000 december- 8000 january-
Fashion sell scarves that are very popular in the fall winter season units sold our anticipated hours
october - 2000
november- 4000
december- 8000
january- 6000
20000 units
if seasonal production is used it is assumed the inventory build up with directly match sales for each month and there will be no inventory build up. 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 the 20,000 units over four months at a level 5000 per month.
a. what is the ending inventory at the end of each month compare the units produced to the unit sold and keep a running total make a chart
b. if the inventory cost seven dollars per unit and we finance at the bank at a cost of 8% what is the monthly financing cost and the total for the four months make a chart
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