Ardel Co Budgeted to Sell 200,000 Units of Zbox in September

question 88

Multiple Choice

Ardel Co. budgeted to sell 200,000 units of Zbox in September. Production of one unit of Zbox requires two pounds of aluminum and five pounds of steel powder. The beginning inventory and the desired ending inventory (in units) are as follows:How many units of Zbox are to be manufactured by Ardel Co. during September?

• A) 150,000.
• B) 189,000.
• C) 200,000.
• D) 201,000.
• E) 202,000.

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Definitions:

Work in Process

Inventory consisting of items that are in the process of being manufactured but are not yet complete.

Raw Materials Transactions

Activities and records pertaining to the purchase, usage, and inventory management of raw materials used in the production process.

November

The eleventh month of the year in the Gregorian calendar, marking the late autumn in the Northern Hemisphere and late spring in the Southern Hemisphere.

Direct Labor Cost

Direct labor cost refers to the expenses associated with employees who directly contribute to the production of goods or services.