Class, inc., expects to sell 22,000 pool cues for $ 12.00 each. direct materials costs are $ 2, direct manufacturing labor is $ 5, and manufacturing overhead is $ 0.89 per pool cue. the following inventory levels apply to 2019: beginning inventory ending inventory direct materials 25,000 units 25,000 units work in process inventory 0 units 0 units finished goods inventory 1,800 units 3,500 units 1. How many pool cues need to be produced in 2019?

Question

Business

Anya

25 March, 01:02

Class, inc., expects to sell 22,000 pool cues for $ 12.00 each. direct materials costs are $ 2, direct manufacturing labor is $ 5, and manufacturing overhead is $ 0.89 per pool cue. the following inventory levels apply to 2019: beginning inventory ending inventory direct materials 25,000 units 25,000 units work in process inventory 0 units 0 units finished goods inventory 1,800 units 3,500 units 1. How many pool cues need to be produced in 2019?

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Lance · Answer 1

Production = 23,700 units

Explanation:

Giving the following information:

Class, inc., expects to sell 22,000 pool cues for $ 12.00 each.

The following inventory levels apply to 2019:

finished goods inventory beginning 1,800 units

finished goods inventory ending 3,500 units

We need to calculate the production for 2019 using the following formula:

Production = Sales + ending inventory - beginning inventory

Production = 22,000 + 3,500 - 1,800 = 23,700 units