Nantucket Industries Manufactures and Sells Two Models of Watches,Prime and Luxuria.It

question 107

Multiple Choice

Nantucket Industries manufactures and sells two models of watches,Prime and Luxuria.It expects to sell 3,500 units of Prime and 1,500 units of Luxuria in 2019.The following estimates are given for 2019:

Nantucket had an inventory of 200 units of Prime and 105 units of Luxuria at the end of 2018.It has decided that as a measure to counter stock outages it will maintain ending inventory of 400 units of Prime and 230 units of Luxuria.
Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $12.There were 120 units of Crimpson in stock at the end of 2018.The management does not want to have any stock of Crimpson at the end of 2019.
What is the total budgeted cost of goods sold for Nantucket Industries in 2019?

• A)$1,325,000
• B)$1,415,000
• C)$1,433,000
• D)$1,625,000

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Definitions:

Solid-Waste

Waste comprising of non-liquid materials that come from residential, industrial, and commercial sources.

Hazardous-Waste Detoxification

The process of removing or reducing hazardous substances from waste to minimize their impact on health and the environment.

Post-Consumer Waste

Materials discarded after being used by a consumer, typically referring to recyclable items.

Pre-Consumer Waste

Pre-consumer waste is waste generated in the manufacturing process before the product reaches the consumer, such as production scraps and trimmings.