Question

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

Answer 1

The sales revenue that will be reported is $150000

Step-by-step 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

Answer 2

The correct answer is B.

Step-by-step 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