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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 1,600 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 1,600 units of Luxuria in 2019. The following estimates are given for 2019: Prime $200 Selling price Direct materials Direct labor Manufacturing overhead 60 80 60 Luxuria $500 100 160 140 Nantucket had an inventory of 210 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 390 units of Prime and 250 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $11.00. 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. What is the total budgeted cost of goods manufactured in 2019? O A. $1,378,000 B. $1,280,000 C. $1,178,000 D. $1,382,000
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