Reference no: EM132667394

Joxy company is considering its forthcoming projections for budget purposes. Roxy's projected sales for the first quarter of the coming year and beginning and ending inventory data are as follows:

Sales                                 50,000 units
Sales price                           $15 per unit
Beginning inventory                   15,000 units
Desired ending inventory           12,000 units

• Each unit is assembled and then painted. Each unit requires 1/2 pound of metal which costs $2.50 per pound. The beginning inventory of metal is 2,000 pounds. Joxy wants to have 3,000 pounds in inventory at the end of the quarter. Each unit requires 2 feet of lumber as well. Lumber is purchased for $2.00 per foot. The beginning inventory of lumber is 4,000 feet of lumber. Joxy want to have 3,000 feet of lumber on hand at the end of the quarter.
• Each unit requires 45 minutes to assemble and paint. Direct labor is billed at a rate of $10.50 per hour.

Problem 1: How many units need to produce during the first quarter of the year?

Select one:

a. 47,000 units
b. 50,000 units
c. 53,000 units
d. 62,000 units