Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4-6 Production cash outflow. California Cement Company produces its products two months in advance of anticipated sales and ships to warehouse centers the month before

4-6
image text in transcribed
Production cash outflow. California Cement Company produces its products two months in advance of anticipated sales and ships to warehouse centers the month before sale. The inventory safety stock is 25% of the anticipated month's sale. Beginning inventory in September 2014 was 32,317 units. Each unit costs $273. The average sales price per unit is $5.79 The cost is made up of 30% labor, 63% materials, and 7% shipping (to the warehouse) The company pays for labor the month of production, shipping the month after production, and raw materials the month prior to production. What is the production cash outflow for products produced in the month of September 2014, and in what months does it occur? Note: September production is based on November anticipated sales. The following are the fourth-quarter sales for 2014 $1,782.000 (October), $1,689,000 (November) and $2,003,000 (December) What is the production cash outflow for the month of September 2014 production? The labor cost is $(Round to the nearest dollar.) The raw materials cost is $ (Round to the nearest dollar) The shipping cost is $(Round to the nearest dollar.) In what months does the production cash outflow for the month of September 2014 production occur? The production cash outflow for the month of September 2014 production is as follows (Select the best response. Due to rounding. numbers below might differ from your orginal answers a few.dollar units) OA. August for shipping, 563,507, September raw materials, S571,559: October for labor, S272,171 O B. August for raw materiais, $571,559. September for shipping $63,507 October for labor $272,171 c. August for raw materials, 5571,559, September for labor, $272,171 October for shipping: 563,507 D. August labor, $272,171, September for raw materials. 5571,559 October for shipping. 563,507

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison

12th Edition

B002ODFC0E

More Books

Students also viewed these Accounting questions