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 = $12,000
Answer:
The formula for each month is described below:
January +(B2*31*C2)+(B2*$A$12)
February +(B2*29*C2)+(B2*$A$12)
March +(B2*31*C2)+(B2*$A$12)
April +(B4*30*C4)+(B4*$A$12)
May +(B3*31*C3)+(B3*$A$12)
Explanation:
The formula matches the requirements for each individual month as number of days change accordingly and $A$12 determines the fixed transport cost the other variables are the number of boxes and the cost per box.
