Answer:
Holding cost = Ending inventory for period * Holding cost per unit
Period 1 holding cost Period 2
= 10 * 200 = 30 * 200
= $2,000 = $6,000
Period 3 Period 4
= 70 * 200 = 30 * 200
= $14,000 = $6,000
Total holding cost:
= 2,000 + 6,000 + 14,000 + 6,000
= $28,000