What is the ending inventory at the end of each month

Assignment Help Corporate Finance
Reference no: EM13200182

Reworked Inc. makes winter hats out of recycled clothing that are very popular in the fall-winter season.  Units sold are anticipated as:

October

3,000 units

November

6,000 units

December

9,000 units

January

8,000 units

Total

26,000 units

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, Reworked decides to go with level production to avoid being out of merchandise.  They will produce the 26,000 items over four months at a level of 6,500 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. (Assume the beginning inventory for October is 0 units. )

b. If the inventory costs $4 per unit and will be financed at the bank at a cost of 12%, what is the monthly financing cost and the total for the four months?

Reference no: EM13200182

Questions Cloud

Find the probability that the amount of cheese on a pizza : a pizza company claims that it puts 0.5 kg of cheese in its pizza of a certain size. the amount of cheese on a randomly selected pizza of this size is normally distributed with a mean of 0.5 kg and standard deviation of 0.025 kg.
Find the percentage of defective light bulbs produced : For some reason the quality of production decreases as the year progresses at a light bulb manufacturing plant. The following data represent the percentage of defective light bulbs produced at a light bulb manufacturing plant
What is the probability that the mean life of the consumer : what is the probability that the mean life of the consumer's group's sample will be at most 52 moths?
What is the correct statistical decision : A researcher expects a treatment to produce an increase in the population mean. The treatment is evaluated using a one tailed hypothesis test, and the test produces z = +1.85. Based on this result what is the correct statistical decision?
What is the ending inventory at the end of each month : What is the ending inventory at the end of each month?  Compare the unit sales to the units produced and keep a running total
How much of the variability in job performanceis explained : These data were used to build a multiple regression model to predict the job performance of new hires based on age and GPA. The results of the analysis are shown below. Regression Analysis: Job Performance versus Age, GPA
What is the maximum are of the enclosure : A rectangular enclosure is to be made using an existing wall as one side, 8m of a perpendicular part of another side, and 90m of fencing.
Firm need to sell to reach the cash break-even point : Pringle Sock Company determines its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $700,000, but 25 percent of this value is represented by depreciation.
Find the break-even point for the firm : Find the break-even point for the firm

Reviews

Write a Review

Corporate Finance Questions & Answers

  Compute the expected return and standard deviation

The United State market has an expected return of 12% and a standard deviation of 22 percent. An index mutual fund that matches Morgan Stanley Europe, Australia has an expected return of 14 percent.

  Budgeting perspectives from the real world

Budgeting is an important section of an management planning. Using budgeting, every part of an management structure can be identified for decision making & controls.

  Calculate the target cost per unit

Baker Plumbing Fixtures is creating a pre-plumbed acrylic shower unit. The team creating the product includes representatives from engineering, marketing, & cost accounting.

  Evaluate the weighted average cost of capital

One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37%

  What was the average cost per share

Calculate missing amounts in the comparative balance sheets and What was the average cost per share of the common stock purchased for the treasury during the month?

  Questions related to stock exchange

Theory questions regarding stock exchange - Is the control issue likely to be of more importance to stockholders of publicly owned or closely held firms? Explain

  Compute the value of investment

Compute the value of investment - Date of purchase of the capital and Date that the capital starts to accumulate interest

  Finding monthly deposited amount

Mr. Moore will be thirty-five years at the end of month & he wishes to stop working in 25 years. He plans to invest in a mutual fund receiving 7.5% yearly return compounded monthly.

  Create liquidators final statement of account

The various assets realized Rs.1,30,000 (excluding securities with secured creditors). Prepare the liquidator's final statement of account.

  Evaluate how much will the father have to save

Evaluate how much will the father have to save each year before the time his daughter starts college in order to put her through school?

  Concepts of present value and capital finance

Discuss and explain the concepts of present value and capital finance. You will require reflecting on concepts and assessing your level of comfort with these concepts.

  Evaluate a companys pricing and retail strategy

Evaluate a companys pricing and retail strategy. Include analysis of the current market situation and the competitive strategy. Make sure to choose a company that you are familiar with and one that you have not used for other modules in the course..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd