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

Use the information below to answer the following question(s) .
Fair Score Company manufactures scoreboards for athletic events.It expects to sell 20,000 scoreboards in 2015.The company has enough beginning inventory of direct materials to produce 8,000 units.Beginning work-in-process inventory totals 2,000 units and is 100 percent complete as to material and 50 percent complete as to labour and overhead.Beginning finished units total 4,000 with a target ending finished inventory of 3,000 units.The scoreboards sell for $800.There is no ending work-in-process inventory.Direct materials costs for each scoreboard total $200 while direct labour is $80.Manufacturing overhead is $60 per scoreboard.
-How many scoreboards should Fair Score Company produce in 2015?

A) 23,000
B) 21,000
C) 20,000
D) 19,000
E) 16,000

Correct Answer:

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