Answer the following questions using the information below:
Kason, Inc., expects to sell 20,000 pool cues for $24.00 each. Direct materials costs are $4.00, direct manufacturing labor is $8.00, and manufacturing overhead is $1.60 per pool cue. The following inventory levels apply to 2011:

-On the 2012 budgeted income statement, what amount will be reported for sales?
A) $492,000
B) $480,000
C) $624,000
D) $636,000
Correct Answer:
Verified
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A)production needs
B)production needs plus
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