Question
Marguerite Inc.. expects to sell 20,000 pool cues for $20.00 each. Direct materials costs are $2.00, direct manufacturing labour is $12.00, and manufacturing overhead is
Marguerite Inc.. expects to sell 20,000 pool cues for $20.00 each. Direct materials costs are $2.00, direct manufacturing labour is $12.00, and manufacturing overhead is $0.80 per pool cue. Each pool cue requires 0.5 kilograms (kg) of material which is all added at the start of production. The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started.. Each pool cue requires one hour of direct labour, and manufacturing overhead is allocated based on direct labour hours. The following inventory levels are expected to apply to 2019: Direct materials Work-in-process inventory Finished goods inventory Beginning inventory 800 kg 200 units 2,000 units Ending inventory 1,000 kg 300 units 2,500 units How many kilograms of material will need to be purchased for 2019 production and inventory requirements? 10,000 kg 10,700 kg 10,500 kg 11,500 kg 10,300 kg
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