Answer the Following Questions Using the Information Below:
Kason, Inc

question 88

Multiple Choice

Answer the following questions using the information below:
Kason, Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2016:
$$\begin{array} { l r r } & \text { Beginning inventory } & \text { Ending inventory } \\\text { Direct materials } & 24,000 \text { units } & 24,000 \text { units } \\\text { Work-in-process inventory } & 0 \text { units } & 0 \text { units } \\\text { Finished goods inventory } & 2,000 \text { units } & 2,500 \text { units }\end{array}$$
-On the 2016 budgeted income statement,what amount will be reported for sales?

• A) $246,000
• B) $240,000
• C) $312,000
• D) $318,000

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