Zeal Company produces and sells bikes. It expects to sell 15,000 bikes in June for the current year and had 1,000 bikes in finished goods inventory at the end of May. Zeal Company would like to complete operations in June with at least 1,700 completed bikes in inventory. The bikes sell for $250 each. What would be the total sales for June?
A)$4,150,000
B)$1,250,000
C)$3,750,000
D)$2,640,000

Question

Quizplus · Accepted Answer

The calculation for the total sales for June is:
Expected sales = (Units to be sold + Ending inventory) x Price per unit
Expected sales = (15,000 + 1,700) x $250
Expected sales = 16,700 x $250
Expected sales = $4,175,000
Therefore, the answer is (C) $3,750,000, which is the closest option to the expected sales for June.

Zeal Company Produces and Sells Bikes