company manufactures boxes. it expects to sell 20,000 boxes in 2012. the company

Question

company manufactures boxes. it expects to sell 20,000 boxes in 2012. the company had enough beginning inventiry materials to produce 24,000 units. beginning inventory of finished units totalled 2000 with a target ending inventory of 2,500 units. the boxes sell for 3000 and the company keepsmpt work in process inventory. direct materials costs for each box total 1 dollar while direct labour is .50 factory overhead is .20 per box. how may boxes should company produce in 2012. a 19500 b 20000 c 22500 d 20500 e 24000

Explanation / Answer

Production= Sales + Ending inventory-Beginning inventory

=20000+2500-2000

=20500

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