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:
$$\begin{array} { l r r }
& \text { Beginning inventory } & \text { Ending inventory } \
\text { Direct materials } & 1,000 \text { units } & 1,000 \text { units } \
\text { Work-in-process inventory } & 0 \text { units } & 0 \text { units } \
\text { Finished goods inventory } & 400 \text { units } & 500 \text { units }
\end{array}$$
-How many ceramic vases should be produced in 2016?

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:
 $$\begin{array} { l r r } 
& \text { Beginning inventory } & \text { Ending inventory } \
\text { Direct materials } & 1,000 \text { units } & 1,000 \text { units } \
\text { Work-in-process inventory } & 0 \text { units } & 0 \text { units } \
\text { Finished goods inventory } & 400 \text { units } & 500 \text { units }
\end{array}$$
-How many ceramic vases should be produced in 2016?

Quizplus · Accepted Answer

To meet the sales expectation of 6,000 vases and increase the finished goods inventory from 400 to 500 units, Elton, Inc. needs to produce 6,100 vases (6,000 sales + 100 additional inventory).

Answer the Following Questions Using the Information Below: Elton, Inc

Answer the Following Questions Using the Information Below:
Elton, Inc