Country Heather manufactures flowerpots. It expects to sell
40,000 flowerpots in 2007. The company had enough beginning
inventory of direct materials to produce 48,000 units. Beginning
inventory of finished units totalled 4,000 with a target ending
inventory of 5,000 units. The flowerpots sell for $6.00 and the
company keeps no work-in-process inventory. Direct materials costs
for each flowerpot total $2.00 while direct labour is $1.00.
Factory overhead is $0.40 per flowerpot.
How many flowerpots should Country Heather produce in 2007?
41,000 flowerpots |
||
48,000 flowerpots |
||
18,000 flowerpots |
||
39,000 flowerpots |
||
44,000 flowerpots |
Number of units to be produced = Ending finished goods inventory + Number of units to be sold - Beginning finished goods inventory
= 5,000 + 40,000 - 4,000
= 41,000
Correct option is (a) i.e 41,000 flowerpots
Hence, 41,000 flowerpots should Country Heather produce in 2007
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Country Heather manufactures flowerpots. It expects to sell 40,000 flowerpots in 2007. The company had enough...
Country Heather manufactures flowerpots. It expects to sell 40,000 flowerpots in 2007. The company had enough beginning inventory of direct materials to produce 48,000 units. Beginning inventory of finished units totalled 4,000 with a target ending inventory of 5,000 units. The flowerpots sell for $6.00 and the company keeps no work-in-process inventory. Direct materials costs for each flowerpot total $2.00 while direct labour is $1.00. Factory overhead is $0.40 per flowerpot. What will be Country Heather's total costs incurred (ie...
Country Heather manufactures flowerpots. It expects to sell 40,000 flowerpots in 2007. The company had enough beginning inventory of direct materials to produce 48,000 units. Beginning inventory of finished units totalled 4,000 with a target ending inventory of 5,000 units. The flowerpots sell for $6.00 and the company keeps no work-in-process inventory. Direct materials costs for each flowerpot total $2.00 while direct labour is $1.00. Factory overhead is $0.40 per flowerpot. What will be Country Heather's budgeted revenue? $240,000 $216,000...
Country Heather manufactures flowerpots. It expects to sell 40,000 flowerpots in 2007. The company had enough beginning inventory of direct materials to produce 48,000 units. Beginning inventory of finished units totalled 4,000 with a target ending inventory of 5,000 units. The flowerpots sell for $6.00 and the company keeps no work-in-process inventory. Direct materials costs for each flowerpot total $2.00 while direct labour is $1.00. Factory overhead is $0.40 per flowerpot. What will be Country Heather's cost of goods sold?...
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