Sudbury Softball Inc makes softball bats and expects most of its sales to occur in the late spring and summer. The sales manager projects the following sales:
|
May | 3,100 |
June | 7,100 |
July | 11,200 |
Aug | 9,200 |
| |
| 30,600 |
| |
|
The company's manufacturing operation is small but efficient. Since the company does not have the equipment and labour to manufacture seasonally, the company utilizes the level production method. Sudbury Softball Inc will produce the 30,600 items at a level of 7,650 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.)
Sudbury Softball Inc |
| Units sold | Units Produced | | Change in inventory | Ending inventory |
May | | | | | |
June | | | | | |
July | | | | | |
Aug | | | | | |
|
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 cost |
May | $ |
June | |
July | |
August | |
| |
Total financing cost | $ |
| |
|
Sudbury Softball Inc makes softball bats and expects most of its sales to occur in the late spring and summer. The sales manager projects the following sales: The company's manufacturing operation is small but efficient. Since the company does not have the equipment and labour to manufacture seasonally, the company utilizes the level production method. Sudbury Softball Inc will produce the 30,600 items at a level of 7,650 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.) 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 cos and the total for the four months? (Do not leave any empty spaces; input a 0 wherever it is required.) 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 cos and the total for the four months? (Do not leave any empty spaces; input a 0 wherever it is required.) Sudbury Softball Inc makes softball bats and expects most of its sales to occur in the late spring and summer. The sales manager projects the following sales: The company's manufacturing operation is small but efficient. Since the company does not have the equipment and labour to manufacture seasonally, the company utilizes the level production method. Sudbury Softball Inc will produce the 30,600 items at a level of 7,650 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.) 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 cos and the total for the four months? (Do not leave any empty spaces; input a 0 wherever it is required.) 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 cos and the total for the four months? (Do not leave any empty spaces; input a 0 wherever it is required.)