Nantucket Industries manufactures and sells two models watches, Prime and Luxuria. It expects to sell 4,000 units of Prime and 1,100 units of Luxuria in 2019.The following estimates are given for 2019: Prime Luxuria Selling price Direct materials $200 $500 20 50 Direct labor 70 160 Manufacturing overhead 90 100 Nantucket had an inventory of 230 units of Prime and 125 units of Luxuria at the end of 2018. It has decided that as a measure to counter stock outages it will maintain ending inventory of 360 units of Prime and 210 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $15. There were 100 units of Crimpson in stock at the end of 2018.The management does not want to have any stock of Crimpson at the end of 2019. What is the amount budgeted for purchase of Crimpson in 2019? O A. $16,500 O B. $17,775 O C. $16,275 O D. $61,950
Nantucket Industries manufactures and sells two models watches, Prime and Luxuria. It expects to sell 4,000 units of Prime and 1,100 units of Luxuria in 2019.The following estimates are given for 2019: Prime Luxuria Selling price Direct materials $200 $500 20 50 Direct labor 70 160 Manufacturing overhead 90 100 Nantucket had an inventory of 230 units of Prime and 125 units of Luxuria at the end of 2018. It has decided that as a measure to counter stock outages it will maintain ending inventory of 360 units of Prime and 210 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $15. There were 100 units of Crimpson in stock at the end of 2018.The management does not want to have any stock of Crimpson at the end of 2019. What is the amount budgeted for purchase of Crimpson in 2019? O A. $16,500 O B. $17,775 O C. $16,275 O D. $61,950
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 3MC: During 2019, R Corp., a manufacturer of chocolate candies, contracted to purchase 100,000 pounds of...
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Hi, could you show me which one is the answer with an explanation? please answer it step by step, thank you very much
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Working:
Particulars | Luxuria |
Budgeted sales | 1100 |
Add: desired ending inevntory | 210 |
Total requirement | 1310 |
Less: Beginning inventory | 125 |
Budgeted production | 1185 |
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