Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early...
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Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows:
March April May June Monthly Unit Sales 3,350 7,350 11,700 9,700 32,100 Total units sold 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 preceding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 32,100 units over four months at a level of 8,025 per month. a. What is the ending inventory at the end of each month? Compare the unit sales to the units produced and keep a running total. March April May June Ending Inventory units units units units b. If the inventory costs $12 per unit and will be financed at the bank at a cost of 12 percent, what is the monthly financing cost and the total for the four months? (Use 1.0 percent as the monthly rate.) Inventory Financing Cost March April May June Total financing cost $ 0
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