Question - Beat, Inc., expects to sell 60,000 athletic uniforms for $80 each in 2012. Direct materials costs are $20, direct manufacturing labor is $8, and manufacturing overhead is $6 for each uniform. The following inventory levels apply to 2011:
Beginning inventory Ending inventory
Direct materials 24,000 units 18,000 units
Work-in-process inventory 0 units 0 units
Finished goods inventory 12,000 units 10,000 units
1) How many uniforms need to be produced in 2012?
A) 52,000 uniforms
B) 68,000 uniforms
C) 60,000 uniforms
D) 58,000 uniforms
2) What is the amount budgeted for direct material purchases in 2012?
A) $1,040,000
B) $1,200,000
C) $1,160,000
D) $1,520,000