Question 3 Production cash outflow. California Cement Company produces its products two months in advance of anticipated sales and ships to warehouse centers the monthbefore sale. The inventory safety stock is 21% of the anticipated month's sale. Beginning inventory in September 2014 was 33,765 units. Each unit costs $2.71. Theaverage sales price per unit is $5.77. The cost is made up of 35% labor, 57% materials, and 8% shipping (to the warehouse). The company pays for labor the monthof production, shipping the month after production, and raw materials the month prior to production. What is the production cash outflow for products produced in themonth of September 2014, andfourth-quarter sales for 2014: $1,863,000 (October), $1,543,000 (November), and $2,023,000 (December).what months does it occur? Note: September production is based on November anticipated sales. The following are theWhat 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 fromyour original answers a few dollar units)O A. August for shipping, $62,831; September raw materials, $447,671; October for labor, $274,886.O B. August for raw materials, $447,671; September for labor, $274,886; October for shipping, $62,831.OC. August for raw materials, $447,671; September for shipping, $62,831; October for labor, $274,886.O D. August labor, $274,886; September for raw materials, $447,671; October for shipping, $62,831.

November sales in units ($1,543,000/$5.77) 267417 Add: Closing Stock (21%*267417) 56158…

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 21% of the anticipated month's sale. Beginning inventory in September 2014 was 33,765 units. Each unit costs $2.71. The average sales price per unit is $5.77. The cost is made up of 35% labor, 57% materials, and 8% 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: $1,863,000 (October), $1,543,000 (November), and $2,023,000 (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 original answers a few dollar units) O A. August for shipping, $62,831; September raw materials, $447,671; October for labor, $274,886. O B. August for raw materials, $447,671; September for labor, $274,886; October for shipping, $62,831. OC. August for raw materials, $447,671; September for shipping, $62,831; October for labor, $274,886. O D. August labor, $274,886; September for raw materials, $447,671; October for shipping, $62,831.

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 1PROB