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Madonna's Clothiers sells scarves that are very popular in the fall-winter season. Units sold are anticipated as follows: October November December January 1,400 2,400 4,800

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Madonna's Clothiers sells scarves that are very popular in the fall-winter season. Units sold are anticipated as follows: October November December January 1,400 2,400 4,800 3,800 12,400 V seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory bulldup The production manager thinks the above assumption is too optimistic and decides to go with lovel production to avoid being out of merchandise. He will produce the 12,400 items at a level of 3,100 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 O wherever it is required. Negative values should be indicated by a minus sign.) Unito old Madonna's Clothier Unit Change in Produced Lnventory Inding Inventory October November December Jonny 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 12,400 items at a level of 3,100 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 O wherever it is required. Negative values should be indicated by a minus sign.) Madonna's Clothiers Units Unite Change in Roding Inventory Inventory October sold Produced November December January b. If the inventory costs $5 per unit and will be financed through the bank at 12 percent per annum, what is the monthly financing cost and the total for the four months? (Use 1 percent or the monthly rate.) (Do not leave any empty spaces; input a wherever it is required) Inventory icon October November December January Total Financing cost

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