Answer the Following Questions Using the Information Below:
Ku-Ring-Gai -How Many Pool Cues Need to Be Produced in 2018

question 38

Multiple Choice

Answer the following questions using the information below:
Ku-ring-gai & Co expects to sell 25 000 pool cues for $12.00 each.Direct materials costs are $2.00,direct manufacturing labour is $4.00,and manufacturing overhead is $0.80 per pool cue.The following inventory levels apply to 2017:
$$\begin{array} { l r r } & \text { Beginning inventory } & \text { Ending inventory } \\\text { Direct materials } & 24000 \text { units } & 24000 \text { units } \\\text { Work-in-process inventory } & 0 \text { units } & 0 \text { units } \\\text { Finished goods inventory } & 2000 \text { units } & 2500 \text { units }\end{array}$$
-How many pool cues need to be produced in 2018?

• A)19 500 cues
• B)22 500 cues
• C)25 500 cues
• D)22 000 cues

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Definitions:

Normal Balances

The side (debit or credit) of an account that is expected to increase, consistent with the principles of double-entry bookkeeping.

Assets

Economic resources owned or controlled by a business or individual, capable of producing value.

Liabilities

Financial obligations or debts owed by a business to external parties or entities.

Owner's Capital

The amount of money and assets the owner has invested in a business.