The planner at a company that makes garden tractors is about to prepare an aggregate production plan that will cover the next 6 months. She has collected the following information:

Month	Demand Forecast Above the available capacity through permanent workforce
1	1,000
2	1,000
3	2,000
4	3,000
5	4,000
6	1,000
Total:	12,000

Production per month = 20 units per worker

Initial inventory = 500 units

Desired ending inventory (at the end of month 6) = 0 units

Cost:

Hire cost = $500 per temporary worker

Inventory = $10 per tractor per month

Backorder = $150 per tractor per month

The optimum aggregate plan is:

Month	1	2	3	4	5	6	Total
Forecast Demand above regular capacity	1,000	1,000	2,000	3,000	4,000	1,000	12,000
# of temporary workers required	50	50	100	150	200	50
Temp. Workers hired	25	25	50	75	0	0
Temp. workers laid off	0	0	0	0	0	125
Temp. Total workers	25	50	100	175	175	50
Output	500	1,000	2,000	3,500	3,500	1,000	11,500
							0

1. What is the ending inventory in Month 2?

2. What is the total cost in Month 2?