The production manager at Antonio Banderos & Scarves plans to produce 10,000 units of seasonal headwear evenly over 4 months at 2,500 units per month. This level production approach is intended to avoid being out of stock compared to matching production directly to anticipated uneven monthly sales. The document asks for the ending inventory each month and the monthly and total 4-month financing costs if inventory is $5 per unit and financed at 6% annually.

1. Antonio Banderos & Scarves sells headwear that is very popular in the fall-winter season. Units
sold are anticipated as follows: 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. She will produce the 10,000 items at a level of 2,500 per month.
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.) b. If the inventory costs $5 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? (Round your intermediate calculations and final answers to
2 decimal places. Do not leave any empty spaces: input a 0 wherever it is required.)