Answer question 4 to 7 by making use of the following information: Sea & Co expe

Question

Answer question 4 to 7 by making use of the following information:

Sea & Co expects to sell 17 000 floating boards for $13.00 each. Direct materials costs are $4.00, direct manufacturing labour is $2.50, and manufacturing overhead is $1.20 per floating board. The following inventory levels apply to the budget period (2017):

4) On the 2017 budgeted income statement, what amount will be reported for sales?

Select one:

a. $351 900

b. $236 600

c. $221 000

d. $205 400

Beginning inventory Ending inventory Direct materials 18 000 units 18 000 units Work-in-process inventory 0 units 0 units Finished goods inventory 3 000 units 4 200 units

Explanation / Answer

Since company expect to sell 17000 floating boards at the price of 13 each so on budgeted income statement the expected sale will be = 17000 * 13 = 221000

So correct answer is C.

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