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Question(s) / Instruction(s):

Pots Unlimited manufactures flowerpots. It expects to sell 40,000 flowerpots in 2008. At the start of 2008, the company had a beginning inventory of raw materials sufficient to produce 48,000 units. Beginning inventory of finished units totaled 4,000 with a target ending inventory of 5,000 units. The flowerpots sell for $6.00 and the company keeps no work-in-process inventory. Direct materials costs for each flowerpot total $2.00 and direct labor cost is $1.00. Factory overhead is $0.40 per unit.

What will be the total costs incurred for direct materials, direct manufacturing labor, and manufacturing overhead, respectively, for 2008?

a.            $0; $40,000; $16,000

b.            $0; $41,000; $16,000

c.             $80,000; $40,000; $16,000

d.            $82,000; $41,000; $16,400

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