Mary's Baskets Company expects to manufacture and sell 30,000 baskets in 2019 for $5 each. There are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. The company keeps no work-in-process inventory. What amount of sales revenue will be reported on the 2019 budgeted income statement? Question 4 options: $130,000 $150,000 $110,000 $170,000

Question

Business

Jadon Horne

4 October, 03:41

Mary's Baskets Company expects to manufacture and sell 30,000 baskets in 2019 for $5 each. There are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. The company keeps no work-in-process inventory. What amount of sales revenue will be reported on the 2019 budgeted income statement? Question 4 options: $130,000 $150,000 $110,000 $170,000

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Answers (2)

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Leonard Case · Answer 1

The sales revenue that will be reported is $150000

Explanation:

As the beginning and ending target inventory is the same, the units sold by Mary's Baskets will remain at 30000 baskets.

Sales = Opening inventory in units + Production - Closing Inventory

Sales in units = 4000 + 30000 - 4000 = 30000 units

The revenue is a function of Sales quantity multiplied by the selling price. The selling price is $5 per unit.

Sales revenue = 30000 * 5 = $150000

London Davidson · Answer 2

The correct answer is B.

Explanation:

Giving the following information:

Mary's Baskets Company expects to manufacture and sell 30,000 baskets in 2019 for $5 each.

Sales revenue is the result of multiplying the number of units sold for the selling price per unit:

Sales = 30,000*5 = $150,000