Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season.
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Question:
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 | 3,900 | |
April | 7,900 | |
May | 12,800 | |
June | 10,800 | |
35,400 | 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 35,400 units over four months at a level of 8,850 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.
Related Book For
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
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