Sudbury Softball Inc makes softball bats and expects most of its sales to occur in the...

 

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Sudbury Softball Inc makes softball bats and expects most of its sales to occur in the late spring and summer. The sales manager projects the following sales: May June July Aug 3,700 7,700 12,400 10,400 34,200 The company's manufacturing operation is small but efficient. Since the company does not have the equipment and labour to manufacture seasonally, the company utilizes the level production method. Sudbury Softball Inc will produce the 34,200 items at a level of 8,550 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 0 wherever it is required. Enter all values as positive value.) May June July Aug Units sold Sudbury Softball Inc Units Produced Change in inventory Ending inventory b. If the inventory costs $12 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 a 0 wherever it is required.) May June July August Total financing cost Inventory financing cost $ 50 Sudbury Softball Inc makes softball bats and expects most of its sales to occur in the late spring and summer. The sales manager projects the following sales: May June July Aug 3,700 7,700 12,400 10,400 34,200 The company's manufacturing operation is small but efficient. Since the company does not have the equipment and labour to manufacture seasonally, the company utilizes the level production method. Sudbury Softball Inc will produce the 34,200 items at a level of 8,550 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 0 wherever it is required. Enter all values as positive value.) May June July Aug Units sold Sudbury Softball Inc Units Produced Change in inventory Ending inventory b. If the inventory costs $12 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 a 0 wherever it is required.) May June July August Total financing cost Inventory financing cost $ 50

Answer rating: 100% (QA)

Step 12 Calculation of the ending inventory at end of each mon... View the full answer