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

How many uniforms need to be produced in 2012?
What is the amount budgeted for direct material purchases in 2012?

Answer rating: 100% (QA)

To determine the number of uniforms that need to be produced in 2012 and the amount budgeted for dir... View the full answer