Not setureT ezto.mneducation.comnm.(px Bambino Sporting Goods makes baseball glo
ID: 2339257 • Letter: N
Question
Not setureT ezto.mneducation.comnm.(px Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows: Monthly Unit Sales March April May June 4,150 8,150 13,300 11,300 36,900 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 36,900 units over four months at a level of 9,225 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 Apri May June Ending Inventory units units units units bo if he inventory costs $12 per umit and wll 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 costExplanation / Answer
a.
Beginning inventory
Units produced
Units sold
Ending Inventory
(Beginning inventory + Units produced - Units sold)
March
-
9,225.00
4,150.00
5,075.00
April
5,075.00
9,225.00
8,150.00
6,150.00
May
6,150.00
9,225.00
13,300.00
2,075.00
June
2,075.00
9,225.00
11,300.00
-
b.
Ending inventory
Inventory cost per unit
Inventory costs
Inventory financing costs
Inventory costs * 12% * 1/12
March
5,075.00
$ 12.00
$ 60,900.00
$ 609.00
April
6,150.00
$ 12.00
$ 73,800.00
$ 738.00
May
2,075.00
$ 12.00
$ 24,900.00
$ 249.00
June
-
$ 12.00
$ 0.00
-
Beginning inventory
Units produced
Units sold
Ending Inventory
(Beginning inventory + Units produced - Units sold)
March
-
9,225.00
4,150.00
5,075.00
April
5,075.00
9,225.00
8,150.00
6,150.00
May
6,150.00
9,225.00
13,300.00
2,075.00
June
2,075.00
9,225.00
11,300.00
-
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