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Productlon cash outflow. National Boverage Company produces its products two months in advanon of anticipoled sales and ships to warehouse centers the month betore sale,

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Productlon cash outflow. National Boverage Company produces its products two months in advanon of anticipoled sales and ships to warehouse centers the month betore sale, The inventory safety stock is 7% of the anticipaled month's sale. Beginning itventory in October 2014 was 267,600 units. Each unit costs $0.21 to make. The avengo seling price ia $0.71 per unit. The cost is made up of 38% labos, 51% molorials, and 11% shipphg (to the warehouse). The company pays for labor the month of production, shipping the month alter prosuctian, and raw materials the month prior to production. What is the production cash outhow for products produced in the month of October 2014, and in what months does it occur? Note: Octaber productien is based on December anticipated sales. The fourth-quarter sailes forecasts are as follows: \$1,960,000 (October), \$2.093,000 (November), and \$2,300,000 (December). What is the production cash outthow for the month of October 2014 production? (Hint: The preduction cost comprises labor, raw materials, and shipping.) The labor cost is 1 (Round to the nearest dollar.)

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