Units Sold October 1,000 November 2,000 December 4,000 January 3,000 10,000 units Antonio Banderas & Scarves...

  

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Units Sold October 1,000 November 2,000 December 4,000 January 3,000 10,000 units Antonio Banderas & Scarves makes headwear that is very popular in the fall-winter season. Units sold are anticipated as (a) (b) Monthly Financing Cost Units Produced Change Inventory Ending Inventory Total Cost (12%/12 months) 2,500 2,500 2,500 2.500 If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. However, Antonio decides to go with level production to avoid being out of merchandise. He will produce the 10,000 items over four months at a level of 2,500 per month. (a) What is the ending inventory at Total the end of each month? (b) if the inventory costs $5 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? DO NOT USE ANY COMMAS, $ SIGNS OR DECIMALS IN YOUR ANSWER-OR IT WILL BE MARKED WRONG Units Sold October 1,000 November 2,000 December 4,000 January 3,000 10,000 units Antonio Banderas & Scarves makes headwear that is very popular in the fall-winter season. Units sold are anticipated as (a) (b) Monthly Financing Cost Units Produced Change Inventory Ending Inventory Total Cost (12%/12 months) 2,500 2,500 2,500 2.500 If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. However, Antonio decides to go with level production to avoid being out of merchandise. He will produce the 10,000 items over four months at a level of 2,500 per month. (a) What is the ending inventory at Total the end of each month? (b) if the inventory costs $5 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? DO NOT USE ANY COMMAS, $ SIGNS OR DECIMALS IN YOUR ANSWER-OR IT WILL BE MARKED WRONG

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a Antonio Banderas Scarves produces 10000 items over four mo... View the full answer