FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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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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