National Beverage Company produces its products two months in advance of anticipated sales and ships to warehouse
Question:
National Beverage 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 10% of the anticipated month’s sale. Beginning inventory in October 2009 was 267,143 units. Each unit costs $0.25 to make. The average selling price is $0.70 per unit. The cost is made up of 40% labor, 50% materials, and 10% shipping (to warehouse). Labor is paid the month of production, shipping the month after production and raw materials the month prior to production. What is the production cash outflow for the month of October 2009 production, and in what months does it occur? Note: October production is based on December anticipated sales. Use the fourth-quarter sales forecasts from Problem 5.
Fantastic news! We've Found the answer you've been seeking!
I am a graduate of Maseno University, I graduated with a second class honors upper division in Business administration. I have assisted many students with their academic work during my years of tutoring. That has helped me build my experience as an academic writer. I am happy to tell you that many students have benefited from my work as a writer since my work is perfect, precise, and always submitted in due time. I am able to work under very minimal or no supervision at all and be able to beat deadlines.
I have high knowledge of essay writing skills. I am also well conversant with formatting styles such as Harvard, APA, MLA, and Chicago. All that combined with my knowledge in methods of data analysis such as regression analysis, hypothesis analysis, inductive approach, and deductive approach have enabled me to assist several college and university students across the world with their academic work such as essays, thesis writing, term paper, research project, and dissertation. I have managed to help students get their work done in good time due to my dedication to writing.