QUESTIONS TO ANSWER:

1. The labor cost is $__________.

2. The raw materials cost is $_________.

3. The shipping cost is $_________.

4. In what month does the production cash outflow for the month of October 2014 production occur?

Production cash outflow. 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 12% of the anticipated month's sale. Beginning inventory in October 2014 was 269,983 units. Each unit costs $0.25 to make. The average selling price is $0.71 per unit. The cost is made up of 39% labor, 51% materials, and 10% 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 October 2014, and in what months does it occur? Note: October production is based on December anticipated sales. The fourth-quarter sales forecasts are as follows: $1,956,000 (October), $2,198,000 (November), and $2,158,000 (December). What is the production cash outflow for the month of October 2014 production? (Hint: The production cost comprises labor, raw materials, and shipping.) The labor cost is $ (Round to the nearest dollar.)