Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows:

 	Monthly Unit Sales
March	3,450
April	7,450
May	11,900
June	9,900
Total units sold	32,700
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 preceding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 32,700 units over four months at a level of 8,175 per 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.

Let's break this problem down step-by-step by comparing the monthly **unit sales** and the **units produced**. The goal is to calculate the **ending inventory** at the end of each month when using level production.

### Given Data:
- **Monthly unit sales**:
  - March: 3,450 units
  - April: 7,450 units
  - May: 11,900 units
  - June: 9,900 units
  - **Total sales**: 32,700 units
- **Level production**:
  - Production is 8,175 units per month over four months (March through June).

### Approach:
For each month, we can calculate the ending inventory by comparing units produced to units sold. The formula for **ending inventory** each month is:

\[
\text{Ending Inventory} = \text{Beginning Inventory} + \text{Units Produced} - \text{Units Sold}
\]

We will start with an initial inventory of zero units, and update the ending inventory month by month.

### Calculation:

1. **March:**
   - Beginning inventory: 0 units
   - Units produced: 8,175 units
   - Units sold: 3,450 units

   \[
   \text{Ending Inventory} = 0 + 8,175 - 3,450 = 4,725 \, \text{units}
   \]

2. **April:**
   - Beginning inventory: 4,725 units (from March)
   - Units produced: 8,175 units
   - Units sold: 7,450 units

   \[
   \text{Ending Inventory} = 4,725 + 8,175 - 7,450 = 5,450 \, \text{units}
   \]

3. **May:**
   - Beginning inventory: 5,450 units (from April)
   - Units produced: 8,175 units
   - Units sold: 11,900 units

   \[
   \text{Ending Inventory} = 5,450 + 8,175 - 11,900 = 1,725 \, \text{units}
   \]

4. **June:**
   - Beginning inventory: 1,725 units (from May)
   - Units produced: 8,175 units
   - Units sold: 9,900 units

   \[
   \text{Ending Inventory} = 1,725 + 8,175 - 9,900 = 0 \, \text{units}
   \]

### Summary of Ending Inventory by Month:
- **March**: 4,725 units
- **April**: 5,450 units
- **May**: 1,725 units
- **June**: 0 units

### Conclusion:
By using level production, the ending inventory fluctuates throughout the months, peaking at 5,450 units in April and reaching zero by the end of June.

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Would you like more details or further explanation? Here are 5 related questions for deeper understanding:

1. How would changing the level production strategy affect the ending inventory?
2. What are the benefits and drawbacks of level production versus seasonal production?
3. How would holding costs for inventory impact the decision to use level production?
4. What happens to the ending inventory if sales exceed the level production amount in one month?
5. How can the production manager adjust if there's an unexpected increase in demand?

**Tip:** When using level production, it's essential to track inventory closely to avoid both stockouts and excess inventory costs.

Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows: March: 3,450 units, April: 7,450 units, May: 11,900 units, June: 9,900 units. Total units sold: 32,700. 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 decides to use level production to avoid being out of merchandise, producing 8,175 units per month. What is the ending inventory at the end of each month?

Explore how to calculate the ending inventory for Bambino Sporting Goods using level production. This problem demonstrates a step-by-step comparison of units sold and units produced, applying the formula 'Ending Inventory = Beginning Inventory + Units Produced - Units Sold' over the months of March to June. Learn how level production can help manage inventory effectively while ensuring enough stock for demand.

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