Wednesday, May 25, 2011

2. On the 20x4 budgeted income statement, what amount will be reported for sales?

ACCOUNTING

Multiple Choice

Daniel, Inc. expects to manufacture and 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 20x4:



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



On the 20x4 budgeted income statement, what amount will be reported for sales?

a. $122,000

b. $118,000

c. $140,000

d. $120,000

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