Crafty Carpentry Company produces and sells a shelf for $25 each. The beginning inventory is 1200 shelves, and the desired ending inventory is 1700 shelves. If budgeted production is 12,000 shelves, what is the forecasted sales revenue from the shelves?

Question

Quizplus · Accepted Answer

To find the forecasted sales revenue, calculate the number of shelves expected to be sold: Beginning Inventory (1200) + Production (12,000) - Ending Inventory (1700) = 11,500 shelves. Then, multiply the number of shelves sold by the price per shelf: 11,500 shelves * $25 = $287,500.

Crafty Carpentry Company Produces and Sells a Shelf for $25