Berry\'s Boxes manufactures boxes. It expects to sell 20,000 boxes in 2015. The

Question

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. What will be Berry's Boxes budgeted revenue? Select one: O a. $78,000 o b. $72,000 c. $79,500 O d. $60,000 O e. $54,000

Explanation / Answer

1)correct option is "D" -60000

Budgeted sales revenue = 20000*3 = 60000

2)correct option is "C"

cost of unit manufactured per unit = 1+.5+.2=1.7

Cost of goods sold = 2000*1.7 = 34000

3)Boxes manufactured during the period =ending FG+ unit sold -beginning FG

                       = 2500+20000-2000

                       = 20500Units

Direct material = 20500* 1 20500

Direct labor = 20500*.5= 10250

Factory overhead= 20500*.2 = 4100

correct option is " D"

4)correct option is E"

Unit produced= 10000+2000-800=11200

Modling = 11200*1 = 11200 hours

Polishing = 11200 *2 = 22400 hours

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