Antonio Banderos & Scarves produces headwear that sells well in fall and winter. Rather than match monthly production to anticipated sales, Antonio decides to produce items evenly at 2,875 per month over four months for a total of 11,500. The summary provides the ending inventory each month by comparing production to sales and keeping a running total. It also calculates the monthly and total financing costs over four months if inventory costs $8 per unit and is financed at the bank at 12% annually (1% monthly).

1. Antonio Banderos & Scarves makes headwear that is very popular in the fall-winter season.
Units sold are anticipated as: If seasonal production is used, it is assumed that inventory will
directly match soles 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
11,500 items over four months at a level of 2,875 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.
Note: Leave no cells blank be certain to enter ' 0 ' wherever required.
b. If the inventory costs $8 per unit and will be financedfat the bank at a cost of 12 percent, what
are the monthly financing cost and the total for the four months? (Use 1 percent as the monthly
rate.) Note: Leave no cells blank be certain to enter ' 0 ' wherever required.