Grandma's Baskets Company expects to manufacture and sell 50,000 baskets in 2011 for $5 each. There are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. The company keeps no work-in-process inventory. What amount of sales revenue will be reported on the 2011 budgeted income statement?

Question

Quizplus · Accepted Answer

The sales revenue is calculated by multiplying the number of baskets expected to be sold (50,000) by the price per basket ($5), resulting in $250,000.

Grandma's Baskets Company Expects to Manufacture and Sell 50,000 Baskets