Question

XYZ Co. expects to sell 26,000 pools for $15 each. Direct materials cost is $3 per pool, direct labor cost is $5 per pool, and manufacturing overhead cost is $1.62 per pool. The following inventory levels apply to 2019: Beginning inventory Ending inventory Direct materials 20,000 units 22,000 units Work-in-process inventory 0 units 100 units Finished goods inventory 1,800 units 2,600 units How many pools need to be produced in 2019

Answer 1

XYZ Co. needs to produce 26,800 pools in 2019 to meet the expected sales and desired inventory levels.

Step-by-step explanation:

To calculate how many pools need to be produced by XYZ Co. in 2019, we can use the following formula:

Start with the expected sales in units: 26,000 pools.

Add the desired ending finished goods inventory: 2,600 pools.

Subtract the beginning finished goods inventory: 1,800 pools.

The result is the total pools needed to meet sales and inventory requirements.

The calculation is: 26,000 (expected sales) + 2,600 (desired ending inventory) - 1,800 (beginning inventory) = 26,800 pools.

Therefore, XYZ Co. needs to produce 26,800 pools in 2019 to meet the expected sales and desired inventory levels.

Answer 2

250120

Step-by-step explanation:

Total pools is equal to 26,000

Directable cost is equal to $5 per pool

Manufacturing overhead equals 1.62 dollars per pool

Direct costes equals $3 per pool

We add up this costs

5+1.62+3 = 9.62 dollars in total

In 2019 the total amount of pools that needs to be produced can be gotten by multiply 26000 with 9.62

26000x9.62

= 250,120