Question

Answer the following questions using the information below:

Kason Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2016:
Beginning inventory Ending inventory
Direct materials 24,000 units 24,000 units
Work-in-process inventory 0 units 0 units
Finished goods inventory 2,000 units 2,500 units

*28) On the 2016 budgeted income statement, what amount will be reported for sales?*
A) $246,000
B) $240,000
C) $312,000
D) $318,000
Objective 6.3

Answer 1

The sales amount reported on the Kason Inc. budgeted income statement for 2016 would be $240,000, calculated by multiplying 20,000 pool cues by the sale price of $12.00 each.

Step-by-step explanation:

On the 2016 budgeted income statement for Kason Inc., the amount that will be reported for sales is calculated by multiplying the expected number of pool cues sold by the price per unit. With the expectation to sell 20,000 pool cues at $12.00 each, the sales figure would be:

20,000 units x $12.00 per unit = $240,000. Therefore, the correct answer to the question is B) $240,000.