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Use the information below to answer questions 8 to 12. Dobble Inc. expects to sell 6,000 ceramic tiles for $20 each in 2018. Direct materials
Use the information below to answer questions 8 to 12. Dobble Inc. expects to sell 6,000 ceramic tiles for $20 each in 2018. Direct materials costs are $2, direct manufacturing labour is $10, and manufacturing overhead is $3 per tile. Each tile requires 0.5 kilogra (kg) of material which is all added at the start of production. The units in work in process beginning ending inventory were half complete as to direct labous and manufacturing overhead costs; the unit beginning inventory are completed before new units are started. Each tile requires one hour of direct labout, and manufacturing overhead is allocated based on direct labout hours. The following invent levels are expected to apply to 2018: Direct materials Work-in-process inventory Finished goods inventory Beginning inventory 1.000 kg 100 units 400 units Ending inventory 800 kg 300 units 500 units 8) On the 2018 budgeted income statement, what amount will be reported for gross margin? A) S122,000 B) $90,000 C) $48,000 D) $30,000 E) $120,000 9) How many ceramic tiles need to be produced in 2018? A) 5,900 tiles B) 6,100 tiles C) 7,000 tiles D) 6,000 tiles E) 6,300 tiles 10) How many kilograms of waterial will need to be purchased for 2018 production and inventory requirements? A) 3,100 kg B) 2,900 kg C)2,750 kg D) 3,150 kg E) 2,950 kg 11) On the 2015 budgeted income statement, what amount will be reported for cost of goods sold? A) $91,500 B) $105,000 C) $90,000 D) $88,500 E) $72,000 12) What are the 2018 budgeted costs for direct manufacturing labout? A) $62,000 B) $60,000 C) $61,000 D) $59,000 E) $63,000
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