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 sold, which is beginning inventory plus production minus ending inventory: (2,000 + 12,500 - 2,200) = 12,300 lanterns sold. The sales revenue is 12,300 lanterns * $20 = $246,000.

Bright Lights Company Produces and Sells a Lantern for $20