Answer:
Bambino Sporting Goods
a. March April May June
Ending Inventory 5,000 6,000 2,000 0
b. Monthly financing cost = $540
Total for the four months = $2,160
Explanation:
a) Data and Calculations:
March April May June
Beginning Inventory 0 5,000 6,000 2,000
Production 9,000 9,000 9,000 9,000
Monthly sales 4,000 8,000 13,000 11,000
Ending Inventory 5,000 6,000 2,000 0
Cost of inventory = $12 per unit
Monthly financing cost = $540 ($108,000 * 6% * 1/12)
Total financing cost for the four months = $2,160 ($540 * 4)
