Bambino Sporting Goods makes exceptional gloves that sell well in the spring and early summer season. A projection of units sold is as follows: March T April May June 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 the 33,600 items at a level of 8,400 per month. 3,600 7,600 12,200 10,200 33,600 a. What is the ending inventory at the end of each month? Compare the units sold to the units produced and complete the table below. (Do not leave any empty spaces; input a O wherever it is required. Enter all values as positive value.) March April May June March April May June Units sold Bambino Sporting Goods Units Produced Change in inventory b. If the inventory costs $20 per unit and will be financed through the bank at 6 percent per annum, what is the monthly financing cost and the total for the four months? (Do not leave any empty spaces; input à 0 wherever it is required.) Ending inventory Inventory financing cost $
Bambino Sporting Goods makes exceptional gloves that sell well in the spring and early summer season. A projection of units sold is as follows: March T April May June 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 the 33,600 items at a level of 8,400 per month. 3,600 7,600 12,200 10,200 33,600 a. What is the ending inventory at the end of each month? Compare the units sold to the units produced and complete the table below. (Do not leave any empty spaces; input a O wherever it is required. Enter all values as positive value.) March April May June March April May June Units sold Bambino Sporting Goods Units Produced Change in inventory b. If the inventory costs $20 per unit and will be financed through the bank at 6 percent per annum, what is the monthly financing cost and the total for the four months? (Do not leave any empty spaces; input à 0 wherever it is required.) Ending inventory Inventory financing cost $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bambino Sporting Goods makes exceptional gloves that sell well in the spring and early summer season. A projection of units sold is
as follows:
March
T
April
May
June
If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory
buildup.
3,600
7,600
12,200
10,200
33,600
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 the 33,600 items at a level of 8,400 per month.
a. What is the ending inventory at the end of each month? Compare the units sold to the units produced and complete the table
below. (Do not leave any empty spaces; input a O wherever it is required. Enter all values as positive value.)
March
April
May
June
March
April
May
June
Units
sold
Bambino Sporting Goods
Units
Produced
Change in
inventory
b. If the inventory costs $20 per unit and will be financed through the bankat 6 percent per annum, what is the monthly financing cost
and the total for the four months? (Do not leave any empty spaces; input à 0 wherever it is required.)
Ending
inventory
Inventory
financing cost
$
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