Answer:
Note: The full question is attached as picture below
a.                                               No of units	Cost per unit   Total Cost
Beginning Inventory      1,200                     $8            $9,600  
Add Purchase                            35,000                  $8            $280,000  
Inventory available for              36,200                  $8             $289,600  
production 
Less Inventory transferred to    33,200                 $8             $265,600  
production  (16,600 Pairs*2 Heels) 
Ending Inventory                        3,000                  $8             $24,000
b. Working capital will be reduced by: (3,000*$8)/2 = $12,000