Use the Information Below to Answer the Following Question(s)

Use the information below to answer the following question(s) .
Fair Score Company manufactures scoreboards for athletic events.It expects to sell 20,000 scoreboards in 2015.The company has enough beginning inventory of direct materials to produce 8,000 units.Beginning work-in-process inventory totals 2,000 units and is 100 percent complete as to material and 50 percent complete as to labour and overhead.Beginning finished units total 4,000 with a target ending finished inventory of 3,000 units.The scoreboards sell for $800.There is no ending work-in-process inventory.Direct materials costs for each scoreboard total $200 while direct labour is $80.Manufacturing overhead is $60 per scoreboard.
-What will be Fair Score Company's budgeted total sales for 2015?

A) $18,400,000
B) $17,600,000
C) $16,000,000
D) $15,200,000
E) $12,300,000

Correct Answer:

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