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Ali Inc. manufactures and sells two brands of vases, Diamond and Jade. It expects to...

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Accounting

Ali Inc. manufactures and sells two brands of vases, Diamond and Jade. It expects to sell 6,200 units of Diamond and 1,300 units of Jade in 2019. The following estimates are given for 2019:

Diamond

Jade
Selling price $200

$500
Direct materials 60 80
Direct labor 90 180
Manufacturing overhead 40 110

Ali Inc. had an inventory of 415 units of Diamond and 85 units of Jade at the end of 2018. It has decided that as a measure to counter stock outages it will maintain ending inventory of 710 units of Diamond and 200 units of Jade.

Each Jade watch requires one unit of Porcelain and has to be imported at a cost of $11. There were 140 units of Porcelain in stock at the end of 2018.The management does not want to have any stock of Porcelain at the end of 2019.

How many units of Diamond vases must be produced in 2019?

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