Oracle Supply Co. supply forecasts purchases of 15,000 widgets in June. It sells the widget at $12.00 per unit. The company has 1,000 units on hand on June 1. The desired ending inventory of widgets on June 30 is to be 20% lower than the beginning inventory. Total June sales for widgets are anticipated to be (in dollars):

Question

Quizplus · Accepted Answer

Beginning inventory = 1,000 units
Desired ending inventory = 0.8 x 1,000 = 800 units
Total widgets needed for June = 15,000 + 800 - 1,000 = 14,800 units

Total sales revenue = Total widgets sold x Price per unit
Total sales revenue = 14,800 x 12.00 = $177,600

Therefore, the answer is (C) $182,400.