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
Chapter7: Budgeting
Section: Chapter Questions
Problem 11EA: Dream Big Pillow Co. pays 65% of its purchases in the month of purchase, 30% the month after the...
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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
![Nantucket Industries manufactures and sells two models of 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
$200
$500
Direct materials
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
B. $17,775
O C. $16,275
O D. $61,950](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd9bed3f1-3476-41df-94aa-d1dd035d2f95%2Fff954277-f37b-4ecc-b143-5142472c9442%2Fe9dc0v7h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Nantucket Industries manufactures and sells two models of 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
$200
$500
Direct materials
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
B. $17,775
O C. $16,275
O D. $61,950
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
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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