Use the Information Below to Answer the Following Question(s)

Use the information below to answer the following question(s) .
Berry's Boxes manufactures boxes.It expects to sell 20,000 boxes in 2015.The company had enough beginning inventory of direct materials to produce 24,000 units.Beginning inventory of finished units totalled 2,000 with a target ending inventory of 2,500 units.The boxes sell for $3.00 and the company keeps no work-in-process inventory.Direct materials costs for each box total $1.00 while direct labour is $0.50.Factory overhead is $0.20 per box.
-How many boxes should Berry's Boxes produce in 2015?

A) 24,000 boxes
B) 20,000 boxes
C) 19,500 boxes
D) 20,500 boxes
E) 22,500 boxes

Correct Answer:

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