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Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to ...

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Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to ...

Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,200 units of Prime and 1,300 units of Luxuria in 2019.The following estimates are given for 2019:

PrimeLuxuria
Selling price$200$500
Direct materials6080
Direct labor90180
Manufacturing overhead40110

Nantucket had an inventory of 230 units of Prime and 85 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 370 units of Prime and 200 units of Luxuria.

Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $11. There were 140 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.

How many units of Prime watches must be produced in 2019?
A) 3,570 units
B) 3,340 units
C) 3,200 units
D) 2,970 units

Textbook

Cost Accounting: A Managerial Emphasis

Edition: 16^th

Authors: Horngren, Datar, Rajan

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More solutions for this book are available here

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vsisto Author

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Enough said, this helped my grade so much

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Maria M.

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thanks

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