Answer:
Total cost of the units made in January = $35,400
Explanation:
Direct material cost in January = Direct material cost per unit * Units produced in January = $20 * 600 = $12,000
Direct labor cost in January = Direct labor cost per unit * Units produced in January = $30 * 600 = $18,000
Overhead costs in January = (Units produced in January / Expected units for the year) * Expected overhead costs for the year = (600 / 6,000) * $54,000 = $5,400
Therefore, we have:
Total cost of the units made in January = Direct material cost in January + Direct labor cost in January + Overhead costs in January = $12,000 + $18,000 + $5,400 = $35,400
D. Just in time (JIT) inventory.
JIT inventory systems make sure that the needed products and materials and received right as they are needed to reduce the holding costs associated with receiving, processing, and storing large amounts of inventory.
I would say that such an operation would be primarily concerned with making things say clothes according to the wishes of the client and its success would depend on how closely the product matched the desires of the client and satisfied their needs.
