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

question 52

Multiple Choice

Use the information below to answer the following question(s) .
Berry's Boxes manufactures boxes.It expects to sell 20,000 boxes in 2015.The company had enough beginning inventory of direct materials to produce 24,000 units.Beginning inventory of finished units totalled 2,000 with a target ending inventory of 2,500 units.The boxes sell for $3.00 and the company keeps no work-in-process inventory.Direct materials costs for each box total $1.00 while direct labour is $0.50.Factory overhead is $0.20 per box.
-How many boxes should Berry's Boxes produce in 2015?

• A)24,000 boxes
• B)20,000 boxes
• C)19,500 boxes
• D)20,500 boxes
• E)22,500 boxes

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Definitions:

Eli Whitney

An American inventor best known for inventing the cotton gin, a significant invention in the agricultural sector.

Thomas Edison

An American inventor and entrepreneur who developed many important devices in the late 19th and early 20th centuries, including the electric light bulb and the phonograph.

Cotton Gin

A machine invented by Eli Whitney in 1793 to quickly and efficiently separate cotton fibers from their seeds, revolutionizing the cotton industry.

Interpersonal Strategies

Actions that involve group members generating ideas and building on each other’s ideas.