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:

PrimeLuxuria

Selling price$200$500

Direct materials70100

Direct labor60180

Manufacturing overhead90150

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?

4.

Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,800 units of Prime and 1,300 units of Luxuria in 2019.The following estimates are given for 2019:

PrimeLuxuria

Selling price$200$500

Direct materials6090

Direct labor70150

Manufacturing overhead40150

Nantucket had an inventory of 240 units of Prime and 125 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 350 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 $13. There were 140 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 manufactured in 2019?

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