Bambino Sporting Good makes baseball gloves that are very popular in the spring and the early summer season. Units sold are anticipates as follows:

March 3400

April 7400

May 11800

June 9800

Total 32400

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 above assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce 32,500units over four months at a level of 8100 per month.

a) What is the ending inventory at the end of each month?

March

April

May

June

b) if the inveotry cost $14.00 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 .005 percent as the monthly rate.)

Please show detail of work.

March 3400

April 7400

May 11800

June 9800

Total 32400

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 above assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce 32,500units over four months at a level of 8100 per month.

a) What is the ending inventory at the end of each month?

March

April

May

June

b) if the inveotry cost $14.00 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 .005 percent as the monthly rate.)

Please show detail of work.

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