Question
Ali Inc. manufactures and sells two brands of vases, Diamond and Jade. It expects to sell 6,200 units of Diamond and 1,300 units of Jade
Ali Inc. manufactures and sells two brands of vases, Diamond and Jade. It expects to sell 6,200 units of Diamond and 1,300 units of Jade in 2019. The following estimates are given for 2019:
Diamond | Jade | |
Selling price | $200 | $500 |
Direct materials | 60 | 80 |
Direct labor | 90 | 180 |
Manufacturing overhead | 40 | 110 |
Ali Inc. had an inventory of 415 units of Diamond and 85 units of Jade at the end of 2018. It has decided that as a measure to counter stock outages it will maintain ending inventory of 710 units of Diamond and 200 units of Jade.
Each Jade watch requires one unit of Porcelain and has to be imported at a cost of $11. There were 140 units of Porcelain in stock at the end of 2018.The management does not want to have any stock of Porcelain at the end of 2019.
How many units of Diamond vases must be produced in 2019?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started