Nantucket Industries Manufactures and Sells Two Models of Watches, Prime

question 162

Multiple Choice

Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,800 units of Prime and 1,300 units of Luxuria in 2019.The following estimates are given for 2019:

Nantucket had an inventory of 240 units of Prime and 125 units of Luxuria at the end of 2018. It has decided that as a measure to counter stock outages it will maintain ending inventory of 350 units of Prime and 230 units of Luxuria.
Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $13. There were 140 units of Crimpson in stock at the end of 2018. The management does not want to have any stock of Crimpson at the end of 2019.
What is the total budgeted cost of goods manufactured in 2019?

• A) $1,153,000
• B) $1,093,350
• C) $1,212,650
• D) $1,272,750

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Definitions:

Creatine Kinase

An enzyme that catalyzes the conversion of creatine and utilizes adenosine triphosphate (ATP) to create phosphocreatine and adenosine diphosphate (ADP), playing a crucial role in energy production in muscles.

ATP Production

The process through which cells generate adenosine triphosphate (ATP), a molecule that stores and transports energy within cells for various functions.

Creatine Phosphate

An energy storage molecule in muscle cells that donates a phosphate group to ADP to produce ATP during the first few seconds of muscle activity.

Sacroiliac Joint

The joint between the sacrum and the iliac bones of the pelvis, which supports the weight of the upper body.