Question

Answer the following questions using the information below:

Elton Inc. expects to sell 6,000 ceramic vases for $20 each. Direct materials costs are $2, direct manufacturing labor is $10, and manufacturing overhead is $3 per vase. The following inventory levels apply to 2016:

Beginning inventory Ending inventory
Direct materials 1,000 units 1,000 units
Work-in-process inventory 0 units 0 units
Finished goods inventory 400 units 500 units

*32) On the 2016 budgeted income statement, what amount will be reported for sales?*
A) $122,000
B) $118,000
C) $140,000
D) $120,000

Answer 1

The sales revenue reported on the 2016 budgeted income statement will be $120,000.

Step-by-step explanation:

To calculate the sales revenue on the 2016 budgeted income statement, we need to multiply the expected number of ceramic vases sold (6,000) by the selling price per vase ($20). So, the sales revenue will be 6,000 x $20 = $120,000.