Wednesday, May 25, 2011

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

ACCOUNTING

Multiple Choice

Marguerite, Inc., expects to manufacture and 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 20x4:



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



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

a. $246,000

b. $240,000

c. $312,000

d. $318,000

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