Antonio Banderos & Scarves sells headwear that is very popular in the fall-winter season. Units sold are anticipated as follows: October November December January 1,150 2,150 4,300 3,300 If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no Inventory buildup. 10,900 The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out of merchandise. She will produce the 10,900 Items at a level of 2,725 per month. October November December January a. What is the ending Inventory at the end of each month? Compare the units sold to the units produced and keep a running total. (Do not leave any empty spaces; Input a 0 wherever It is required. Negative values should be indicated by a minus sign.) October November December January Units sold Antonio Banderos & Scarves Total financing cost Units Produced Change in inventory b. If the inventory costs $4 per unit and will be financed through the bank at 12 percent per annum, what is the monthly financing cost and the total for the four months? (Round your Intermediate calculations and final answers to 2 decimal places. Do not leave any empty spaces; Input a O wherever it is required.) Ending inventory Financing cost $
Antonio Banderos & Scarves sells headwear that is very popular in the fall-winter season. Units sold are anticipated as follows: October November December January 1,150 2,150 4,300 3,300 If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no Inventory buildup. 10,900 The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out of merchandise. She will produce the 10,900 Items at a level of 2,725 per month. October November December January a. What is the ending Inventory at the end of each month? Compare the units sold to the units produced and keep a running total. (Do not leave any empty spaces; Input a 0 wherever It is required. Negative values should be indicated by a minus sign.) October November December January Units sold Antonio Banderos & Scarves Total financing cost Units Produced Change in inventory b. If the inventory costs $4 per unit and will be financed through the bank at 12 percent per annum, what is the monthly financing cost and the total for the four months? (Round your Intermediate calculations and final answers to 2 decimal places. Do not leave any empty spaces; Input a O wherever it is required.) Ending inventory Financing cost $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Antonio Banderos & Scarves sells headwear that is very popular in the fall-winter season. Units sold are anticipated as follows:
October
November
December
January
1,150
2,150
4,300
3,300
If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no Inventory
buildup.
10,900
The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out of
merchandise. She will produce the 10,900 Items at a level of 2,725 per month.
October
November
December
January
a. What is the ending Inventory at the end of each month? Compare the units sold to the units produced and keep a running total. (Do
not leave any empty spaces; Input a 0 wherever It is required. Negative values should be indicated by a minus sign.)
October
November
December
January
Units
sold
Antonio Banderos & Scarves
Total financing cost
Units
Produced
Change in
inventory
b. If the inventory costs $4 per unit and will be financed through the bank at 12 percent per annum, what is the monthly financing cost
and the total for the four months? (Round your Intermediate calculations and final answers to 2 decimal places. Do not leave any
empty spaces; Input a O wherever it is required.)
Ending
inventory
Financing cost
$
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