Answer the Following Questions Using the Information Below:
Kason, Inc

question 95

Multiple Choice

Answer the following questions using the information below:
Kason, Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2016:
$$\begin{array} { l r r } & \text { Beginning inventory } & \text { Ending inventory } \\\text { Direct materials } & 24,000 \text { units } & 24,000 \text { units } \\\text { Work-in-process inventory } & 0 \text { units } & 0 \text { units } \\\text { Finished goods inventory } & 2,000 \text { units } & 2,500 \text { units }\end{array}$$
-How many pool cues need to be produced in 2016?

• A) 22,500 cues
• B) 22,000 cues
• C) 20,500 cues
• D) 19,500 cues

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Definitions:

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of the investment.

Selling Price

The price at which a product or service is sold to the consumer.

Inventory

The total amount of goods or materials held in stock by a business or organization for the purpose of resale or production.

Cost of Goods Sold

The direct expenses related to the production or purchase of products a company sells.