Bright Lights Company produces and sells a lantern for $20 each.The beginning inventory is 2,000 lanterns,and the desired ending inventory is 2,200 lanterns.If budgeted production is 12,500 lanterns,what is the forecasted sales revenue from the lanterns?

Question

Quizplus · Accepted Answer

The forecasted sales revenue is calculated by determining the number of lanterns expected to be sold and multiplying by the selling price. The expected sales are beginning inventory + production - ending inventory = 2,000 + 12,500 - 2,200 = 12,300 lanterns. The sales revenue is 12,300 lanterns * $20 = $246,000.

Bright Lights Company Produces and Sells a Lantern for $20