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

question 27

Multiple Choice

Use the information below to answer the following question(s) .
Daniel Inc. expects to sell 6,000 ceramic vases for $20 each in 2012. Direct materials costs are $2, direct manufacturing labour is $10, and manufacturing overhead is $3 per vase. Each vase 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 vase 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) 3,100 kg
• B) 2,900 kg
• C) 2,750 kg
• D) 3,150 kg
• E) 2,950 kg

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Definitions:

Cognitive Ability

The capacity to perform higher mental processes of reasoning, remembering, understanding, and problem solving.

Continuous Change

A process where variables or conditions evolve over time without abrupt interruptions.

Discontinuous Change

Abrupt, non-linear transformations in development or processes that can significantly alter conditions or outcomes.