YoLight Inc. uses the sales forecast to plan production. The company produces the magnetic light bulb called "Bright-1" one month in advance of the forecasted sale. The January sales forecast of 38 units of these bulbs will be scheduled for December production. However, the company also notes that sales forecasts and actual sales can differ, and the company has precisely calculated that it needs about 18.42% in inventory to accommodate sales above forecast. Raw materials for Bright-1 are acquired the month ahead (in this case, November). Wages are paid in the current month of production (December). Utilities are paid a month after production (January), and shipping is paid a month after the sale (two months after production, February). Finally, an inventory count reveals that there are currently 3 units on hand (at the start of November when the raw material order is placed). Unit production costs are $50 for raw materials, $30 for wages, $20 for utilities, and $10 for shipping. Determine the cash outflows for December's production.
A) Raw material of $1,200 paid in November, Wages of $1,140 paid in December, Utilities of $760 paid in January, Shipping of $380 paid in February
B) Raw material of $1,900 paid in November, Wages of $1,140 paid in December, Utilities of $760 paid in January, Shipping of $380 paid in February
C) Raw material of $1,900 paid in November, Wages of $1,000 paid in December, Utilities of $760 paid in January, Shipping of $380 paid in February
D) Raw material of $1,900 paid in November, Wages of $1,140 paid in December, Utilities of $380 paid in January, Shipping of $760 paid in February
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