Use the Information Below to Answer the Following Question(s)

question 54

Multiple Choice

Use the information below to answer the following question(s) .
Marguerite Inc.. expects to sell 20,000 pool cues for $20.00 each. Direct materials costs are $2.00, direct manufacturing labour is $12.00, and manufacturing overhead is $0.80 per pool cue. Each pool cue requires 0.5 kilograms (kg) of material which is all added at the start of production. The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started.. Each pool cue requires one hour of direct labour, and manufacturing overhead is allocated based on direct labour hours. The following inventory levels are expected to apply to 2012:

-How many kilograms of material will need to be purchased for 2012 production and inventory requirements?

• A) 11,500 kg
• B) 10,700 kg
• C) 10,300 kg
• D) 10,500 kg
• E) 10,000 kg

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Definitions:

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Promotional Mix

The combination of marketing strategies and tactics used by a company to promote its products or services, including advertising, sales promotions, public relations, and direct marketing.

Inspiration

The process of being mentally stimulated to do or feel something, especially to do something creative or achieve goals.

Observation

A method of collecting data and insights by carefully monitoring behaviors or phenomena in natural or controlled environments.