Rundle Pet Supplies purchases its inventory from a variety of suppliers, some of which require a six-week lead time before delivering the goods. To ensure that she has a sufficient supply of goods on hand, Ms. Leblanc, the owner, must maintain a large supply of inventory. The cost of this inventory averages $21,400. She usually finances the purchase of inventory and pays a 9 percent annual finance charge. Ms. Leblanc's accountant has suggested that she establish a relationship with a single large distributor who can satisfy all of her orders within a two-week time period. Given this quick turnaround time, she will be able to reduce her average inventory balance to $3,900. Ms. Leblanc also believes that she could save $2,400 per year by reducing phone bills, insurance, and warehouse rental space costs associated with ordering and maintaining the larger level of inventory. Required b. Based on the information provided, how much of Ms. Leblanc's inventory holding cost could be eliminated by taking the accountant's advice? Eliminated inventory holding cost Required Supply the missing information on the following schedule of cost of goods manufactured. FISCHER CORPORATION Schedule of Cost of Goods Manufactured For the Year Ended December 31, Year 2 Raw materials Beginning inventory Plus: Purchases 119,100 $ 149,900 Raw materials available for use Minus: Ending raw materials inventory Cost of direct raw materials used $ 122,900 Direct labor 23,200 Manufacturing overhead Total manufacturing costs Plus: Beginning work in process inventory 309,200 Total work in process 46,200 Minus: Ending work in process inventory Cost of goods manufactured $ 306,900