Bradford, Inc., expects to sell 6,000 ceramic vases for $21 each. Direct materials costs are $3, direct manufacturing labor is $10, and manufacturing overhead is $3 per vase. The following inventory levels apply to 2019: Beginning inventory Ending inventory Direct materials 5,000 units 5,000 units O units Work - in - process inventory Finished goods inventory O units 400 units 600 units How many ceramic vases should be produced in 2019? O A. 11,000 vases O B. 6,000 vases OC. 6,200 vases O D. 5,800 vases
Bradford, Inc., expects to sell 6,000 ceramic vases for $21 each. Direct materials costs are $3, direct manufacturing labor is $10, and manufacturing overhead is $3 per vase. The following inventory levels apply to 2019: Beginning inventory Ending inventory Direct materials 5,000 units 5,000 units O units Work - in - process inventory Finished goods inventory O units 400 units 600 units How many ceramic vases should be produced in 2019? O A. 11,000 vases O B. 6,000 vases OC. 6,200 vases O D. 5,800 vases
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 3CE: Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods...
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could you tell me what's the answer with an explanation?
Expert Solution
Step 1
Formula:
Number of units produced = Sales units + Finished goods Ending inventory - Finished goods Beginning inventory
Deduction of Finished goods Beginning inventory from Finished goods ending inventory and sales units derives the number of units produced.
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