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Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,200 units of Prime and 1,900 units of Luxuria
Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,200 units of Prime and 1,900 units of Luxuria in 2020. The following estimates are given for 2020: Luxuria Prime $200 60 $500 70 Selling price Direct materials Direct labor Manufacturing overhead 50 190 60 120 Nantucket had an inventory of 210 units of Prime and 105 units of Luxuria at the end of 2019. It has decided that as a measure to counter stock outages it will maintain ending inventory of 400 units of Prime and 220 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $10. There were 100 units of Crimpson in stock at the end of 2019. The management does not want to any stock Crimpson at end 2020. What is the amount budgeted for purchase of Crimpson in 2020? O A. $20,150 B. $19,000 C. $19,150 D. $33,900
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