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please do Part B as well 11:12 5 Problem 1 See Pages 160 - 165 Nature Solutions Inc., produces an energy drink that is very
please do Part B as well
11:12 5 Problem 1 See Pages 160 - 165 Nature Solutions Inc., produces an energy drink that is very popular in the fall-winter season. Units sold are anticipated as: 4,800 I October November December January Total 8,640 17,280 13,440 44,160 units If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. However, Nature Solutions Inc. decides to go with level production to avoid being out of merchandise. The company will produce the 44,160 units over four months at a level of 11,040 per month Part A What is the ending inventory in units at the end of each month? Complete the following table. (Hint: September's ending inventory=0 therefore, October's beginning inventory-0) Beginning Units Units Ending Inventory Produced Sold Inventory October November December January 0 tv Part B If the inventory costs $10 per unit and will be financed at the bank at a cost of 0.6 percent per mooth, what is the monthly financing cost and the total for the four months? Hint: Complete the following table: Ending Inventory (of units) Total Inventory Costs Inventory Financing Costs October November December January Total Financing Cost Step by Step Solution
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