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telo118 [61]
4 years ago
8

EA8.

Business
1 answer:
Naddik [55]4 years ago
7 0

Answer:

960,000 units

Explanation:

In order to maintain the desired ending inventory, the following relationship must be true.

Beginning inventory + produced units  = expected sales + desired ending inventory

Skyline, Inc. has a planned production of 900,000 units, a desired beginning inventory of 160,000 units, and a desired ending inventory of 100,000 units. Therefore:

160,000 + 900,000 = Expected\ sales + 100,000\\Expected\ sales=960,000\ units

960,000 units are estimated to be sold.

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Answer:

Companies that use ABC allocate all costs including direct materials, direct labour and manufacturing overhead to the product based on an activity cost allocation rate.

This statement is False.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

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