Solution-Determine how many units should be produced

Determine how many units should be produced

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Reference no: EM132715607

Below are forecast sales and inventory information for Silver, Inc., :

Unit selling price $20 per unit

Sales 45,000 units

Beginning Finished Goods inventory 10,000 units

Desired ending Finished Goods inventory 9,000 units

The standard labor time to produce one unit is 0.5 hrs. and standard labor rate is $6 per hour. Silver allocate overhead using predetermined overhead rate at $2/labor hour.

Problem 1: According to the production budget, how many units should be produced?

A. 30,000 units

B. 42,000 units

C. 44,000 units

D. 50,000 units

Reference no: EM132715607

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Determine how many units should be produced

Reference no: EM132715607

Reference no: EM132715607

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