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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 1,500 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 1,500 units of Luxuria in 2019.The following estimates are given for 2019: Prime Luxuria $200 $500 Selling price Direct materials 20 100 Direct labor 50 190 Manufacturing overhead 50 130 Nantucket had an inventory of 250 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 210 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $12. There were 110 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. What is the amount budgeted for purchase of Crimpson in 2019? A. $18,180 B. $19,500 C. $39,840 D. $18,000
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