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	3,900
April	7,900
May	12,800
June	10,800
	35,400	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 35,400 units over four months at a level of 8,850 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.

 

March April May June Answer is complete and correct. Ending Inventory 4,950 5,900 1,950 0 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.) Answer is complete but not entirely correct. Inventory Financing Cost March April May June Total financing cost units units units units $ $ 4,752 X 5,664 X 1,872 X 0 12,288