Multiple Choice
Use the information below to answer the following question(s) .
Country Heather manufactures flowerpots.It expects to sell 40,000 flowerpots in 2016.The company had enough beginning inventory of direct materials to produce 48,000 units.Beginning inventory of finished units totalled 4,000 with a target ending inventory of 5,000 units.The flowerpots sell for $6.00 and the company keeps no work-in-process inventory.Direct materials costs for each flowerpot total $2.00 while direct labour is $1.00.Factory overhead is $0.40 per flowerpot.
-How many flowerpots should Country Heather produce in 2016?
A) 48,000 flowerpots
B) 44,000 flowerpots
C) 41,000 flowerpots
D) 39,000 flowerpots
E) 18,000 flowerpots
Correct Answer:
Verified
Correct Answer:
Verified
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