Answer question 4 to 7 by making use of the following information: Sea & Co expe

Question

Answer question 4 to 7 by making use of the following information:

Sea & Co expects to sell 17 000 floating boards for $13.00 each. Direct materials costs are $4.00, direct manufacturing labour is $2.50, and manufacturing overhead is $1.20 per floating board. The following inventory levels apply to the budget period (2017):

5) How many floating boards need to be produced in 2017?

Select one:

a. 18 200 floating boards

b. 15 800 floating boards

c. 20 000 floating boards

d. 17 000 floating boards

Beginning inventory Ending inventory Direct materials 18 000 units 18 000 units Work-in-process inventory 0 units 0 units Finished goods inventory 3 000 units 4 200 units

Explanation / Answer

No.of floating boards need to be produced in 2017 In Numbers Ending Finished Goods Inventory for 2017 4200 Add : No.fo Floating boards to be sold 17000 Less : Beginning Finished Goods Inventory for 2017 3000 No.of floating boards need to be produced in 2017 18200 The answer is Option a.

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