Use the information below to answer the following question(s).Samson Inc.expects to sell 10,000 barbells for $18.00 each.Direct materials costs are $5.00, direct manufacturing labour is $6.00, and manufacturing overhead is $2.50 per barbell.Each barbell requires 6 kilograms (kg)of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started..Each barbell requires one-quarter hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.Marketing costs are $2.00 per barbell.The following inventory levels are expected to apply to 2019:

-How many kilograms of material will need to be purchased for 2019 production and inventory requirements?

Question

Use the information below to answer the following question(s).Samson Inc.expects to sell 10,000 barbells for $18.00 each.Direct materials costs are $5.00, direct manufacturing labour is $6.00, and manufacturing overhead is $2.50 per barbell.Each barbell requires 6 kilograms (kg)of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started..Each barbell requires one-quarter hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.Marketing costs are $2.00 per barbell.The following inventory levels are expected to apply to 2019:
 
-How many kilograms of material will need to be purchased for 2019 production and inventory requirements?

Quizplus · Accepted Answer

10,000 barbells will be sold, and half of the half a year's sales (2,500 units) will be produced in the first half of 2019, requiring 6 kg of raw materials per unit, or 2,500 × 6 = 15,000 kg of raw materials. For the second half of 2019, an additional 2,500 units will be produced, requiring another 15,000 kg of raw materials. Therefore, the total amount of raw materials needed in 2019 is 15,000 kg + 15,000 kg = 30,000 kg. However, since there are 1,250 units in ending Inventory, which are half complete as to direct labour and manufacturing overhead costs, raw materials for those units were already purchased in the first half of 2019. Therefore, the amount of raw material that needs to be purchased in 2019 is 30,000 kg - (1,250 × 6) kg = 22,500 kg. 
Therefore, the correct choice is B.

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