6. New Hampton Company has 40,000 pounds of krypton in inventory at the beginning of August. The company plans to produce 6,000 widgets (its only product) in August. If each widget requires 30 pounds of krypton and New Hampton wants 50,000 pounds of krypton in inventory at the end of the month, how many pounds of krypton should the company plan to purchase during August? A. 170,000 B. 180,000 C. 190,000 D. 210,000 Jackie’s Jump Ropes is planning to produce 2,000 boxes of jump ropes during June. Each box of jump ropes (1 unit) requires 75 feet of rope and 0.50 hours of direct labor. Rope costs $0.12 per foot and employees of the company are paid $11.00 per hour. Manufacturing overhead is applied at a rate of 150% of direct labor costs. Jackie’s has 15,000 feet of rope in beginning inventory and wants to have 20,000 feet of rope in ending inventory. 7. How many feet of rope should Jackie’s Jump Ropes plan to buy during June? A. 165,000 B. 150,000 C. 145,000 D. 155,000 8. What is the total cost per unit of the units produced in June? A. $14.50 B. $13.75 C. $22.75 D. $17.25
6. New Hampton Company has 40,000 pounds of krypton in inventory at the beginning of
August. The company plans to produce 6,000 widgets (its only product) in August. If each
widget requires 30 pounds of krypton and New Hampton wants 50,000 pounds of krypton in
inventory at the end of the month, how many pounds of krypton should the company plan to
purchase during August?
A. 170,000
B. 180,000
C. 190,000
D. 210,000
Jackie’s Jump Ropes is planning to produce 2,000 boxes of jump ropes during June. Each box of
jump ropes (1 unit) requires 75 feet of rope and 0.50 hours of direct labor. Rope costs $0.12
per foot and employees of the company are paid $11.00 per hour. Manufacturing
applied at a rate of 150% of direct labor costs. Jackie’s has 15,000 feet of rope in beginning
inventory and wants to have 20,000 feet of rope in ending inventory.
7. How many feet of rope should Jackie’s Jump Ropes plan to buy during June?
A. 165,000
B. 150,000
C. 145,000
D. 155,000
8. What is the total cost per unit of the units produced in June?
A. $14.50
B. $13.75
C. $22.75
D. $17.25
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