Ali Inc. manufactures and sells two brands of vases, Diamond and Jade. It expects to sell 4,100 units of Diamond and 1,3
Posted: Thu May 19, 2022 3:39 pm
Ali Inc. manufactures and sells two brands of vases, Diamond and
Jade. It expects to sell 4,100 units of Diamond and 1,300 units of
Jade in 2019.The following estimates are given for 2019:
Diamond
Jade
Selling price
$200
$500
Direct materials
60
80
Direct labor
90
180
Manufacturing overhead
40
110
Ali Inc. had an inventory of 320 units of Diamond and 85 units
of Jade at the end of 2018. It has decided that as a measure to
counter stock outages it will maintain ending inventory of 510
units of Diamond and 200 units of Jade.
Each Jade watch requires one unit of Porcelain and has to be
imported at a cost of $11. There were 140 units of Porcelain in
stock at the end of 2018.The management does not want to have any
stock of Porcelain at the end of 2019.
How many units of Diamond vases must be produced in 2019?
Jade. It expects to sell 4,100 units of Diamond and 1,300 units of
Jade in 2019.The following estimates are given for 2019:
Diamond
Jade
Selling price
$200
$500
Direct materials
60
80
Direct labor
90
180
Manufacturing overhead
40
110
Ali Inc. had an inventory of 320 units of Diamond and 85 units
of Jade at the end of 2018. It has decided that as a measure to
counter stock outages it will maintain ending inventory of 510
units of Diamond and 200 units of Jade.
Each Jade watch requires one unit of Porcelain and has to be
imported at a cost of $11. There were 140 units of Porcelain in
stock at the end of 2018.The management does not want to have any
stock of Porcelain at the end of 2019.
How many units of Diamond vases must be produced in 2019?