General Corporation manufactures boxes.The estimated number of boxes sold for the first three months is: $$\begin{array} { l l }
\text { Month } & \text { Sales } \
\hline \text { January } & 3,000 \
\text { February } & 4,200 \
\text { March } & 3,900
\end{array}$$ Finished goods inventory at the end of December was 900 units.Ending finished goods inventory is equal to 20 percent of the next month's sales.General Corporation expects to sell the boxes for $5 each.April sales are projected at 4,500 boxes.
What is the expected sales revenue for March?
A)$4,500
B)$15,000
C)$19,500
D)$21,000

Question

General Corporation manufactures boxes.The estimated number of boxes sold for the first three months is: $$\begin{array} { l l } 
\text { Month } & \text { Sales } \
\hline \text { January } & 3,000 \
\text { February } & 4,200 \
\text { March } & 3,900
\end{array}$$ Finished goods inventory at the end of December was 900 units.Ending finished goods inventory is equal to 20 percent of the next month's sales.General Corporation expects to sell the boxes for $5 each.April sales are projected at 4,500 boxes.
What is the expected sales revenue for March?
A)$4,500
B)$15,000
C)$19,500
D)$21,000

Quizplus · Accepted Answer

To calculate the expected sales revenue for March, we need to first find the estimated number of boxes sold in March. The estimated number of boxes sold for the first three months is given as 11ea7e3a_e47a_897e_ab1f_617c61b81349_TB3984_00. We can divide this by 3 to get the estimated number of boxes sold per month: 11ea7e3a_e47a_897e_ab1f_617c61b81349_TB3984_00 / 3 = 4,000 So, we expect to sell 4,000 boxes in March. Next, we need to calculate the ending finished goods inventory for March. We know that the ending finished goods inventory is equal to 20% of the next month's sales, which is April in this case. April sales are projected at 4,500 boxes, so the ending finished goods inventory for March is: 20% of 4,500 = 900 Therefore, the number of boxes sold in March is: 4,000 - 900 = 3,100 Finally, we can calculate the expected sales revenue for March by multiplying the number of boxes sold by the selling price per box: 3,100 x $5 = $<<3100*5=15500>>15,500 So, the expected sales revenue for March is $15,500, which is option C.

General Corporation Manufactures Boxes Finished Goods Inventory at the End of December Was 900