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Berry's Boxes manufactures boxes. It expects to sell 20,000 bo of direct materials to produce 24,000 units. Beginning inventor inventory of 2,500 units. The boxes sell for $3.00 and the comp costs for each box total $1.00 while direct labour is $0.50. Fact What will be Berry's Boxes production costs incurred for direct

Berry's Boxes manufactures boxes. It expects to sell 20,000 bo of direct materials to produce 24,000 units. Beginning inventor inventory of 2,500 units. The boxes sell for $3.00 and the comp costs for each box total $1.00 while direct labour is $0.50. Fact What will be Berry's Boxes production costs incurred for direct

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Berry's Boxes manufactures boxes. It expects to sell 20,000 boxes in 2018. The company had enough beginning inventory of direct materials to produce 24,000 units. Beginning inventory of finished units totalled 2,000 with a target ending inventory of 2,500 units. The boxes sell for $3.00 and the company keeps no work-in-process inventory. Direct materials costs for each box total $1.00 while direct labour is $0.50. Factory overhead is $0.20 per box. What will be Berry's Boxes production costs incurred for direct materials, direct manufacturing labour, and manufacturing overhead, respectively, for 2018? options: a $20,500; $10,250; $4,100 b $12,000; $6,000; $4,800 $19,500; $9,750; $3,900 d $22,500; 11,250; $4,500 e $10,000; $5,000; $4,000
Transcribed Image Text:Berry's Boxes manufactures boxes. It expects to sell 20,000 boxes in 2018. The company had enough beginning inventory of direct materials to produce 24,000 units. Beginning inventory of finished units totalled 2,000 with a target ending inventory of 2,500 units. The boxes sell for $3.00 and the company keeps no work-in-process inventory. Direct materials costs for each box total $1.00 while direct labour is $0.50. Factory overhead is $0.20 per box. What will be Berry's Boxes production costs incurred for direct materials, direct manufacturing labour, and manufacturing overhead, respectively, for 2018? options: a $20,500; $10,250; $4,100 b $12,000; $6,000; $4,800 $19,500; $9,750; $3,900 d $22,500; 11,250; $4,500 e $10,000; $5,000; $4,000
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