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If there were 60,000 pounds of rqqw materials on January 1, 120.000 pounds are d

ID: 2482479 • Letter: I

Question

If there were 60,000 pounds of rqqw materials on January 1, 120.000 pounds are desired for inventory at january 31, and 410,000 pounds are required for January productions how many pounds of raw materials should be purchased in january ? A) 350.000 pounds B) 530.000 pounds c) 290.000 pounds D) 470,000 pounds Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix cosls $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Teller has 3.900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory. What is the total amount to be budgeted lor direct labor for the month? A) $2,610 B) $10,440C) $2,700 D) $41,760

Explanation / Answer

11)correct option is "D" - 470000 pounds

Pounds to be purchased =Required for production +ending inventory -Beginning inventory

                                              = 410000+ 120000 -60000

                                              = 470000 pounds

12)correct option is "A" - 2610

Labor cost = Production * time required per box * rate per hour

                 = 870*1/4 * 12 = 870*.25 * 12 = 2610

13)correct option is "C" - 1881600

3 rd quarter sales = 10000*112%*112% = 12544 boards

Sales revenue = 12544*150 = 1881600

)

14)cash collection of nov = (1160000*.5)+(1240000*.5)

                                       = 580000+ 620000

                                       = 1,200,000

correct option is "C"