Question

Answer the following questions using the information below:

Elton Inc. expects to sell 6,000 ceramic vases for $20 each. Direct materials costs are $2, direct manufacturing labor is $10, and manufacturing overhead is $3 per vase. The following inventory levels apply to 2016:

Beginning inventory Ending inventory
Direct materials 1,000 units 1,000 units
Work-in-process inventory 0 units 0 units
Finished goods inventory 400 units 500 units

*33) How many ceramic vases should be produced in 2016?*
A) 5,900 vases
B) 6,100 vases
C) 7,000 vases
D) 6,000 vases

Answer 1

The number of ceramic vases that should be produced in 2016 is 5,900 vases.

Step-by-step explanation:

To find the number of ceramic vases that should be produced in 2016, we need to consider the demand and the ending inventory. The demand is given as 6,000 vases and the ending inventory is 500 units. We can calculate the required production by subtracting the ending inventory from the demand: 6,000 - 500 = 5,500 vases. Therefore, the answer is A) 5,900 vases.