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?

Answer 1

budgeted sales revenue will be 150,000

Step-by-step explanation:

It expects to sell 30,000 at $5 each

so sales revenue would be

`30,000 * 5 = 150,000`

The beginning and ending inventory has no relevance. The question is already telling us how many unis the company expecs to sell and their unit price.

We just have to multiply