Canceco Company produces and sells pillows. It expects to sell 10,000 pillows in the current year and had 1,000 pillows in finished goods inventory at the end of the previous year. Canceco would like to complete operations in the current year with at least 1,250 completed pillows in inventory. There is no ending work-in-process inventory. The pillows sell for $5 each.
-Refer to the figure.What would be the total sales for the current year?
A)$50,000
B)$51,250
C)$55,000
D)$56,250

Question

Quizplus · Accepted Answer

Canceco expects to sell 10,000 pillows in the current year at $5 each. Total sales = 10,000 pillows * $5/pillow = $50,000. The inventory levels do not affect the total sales figure.

Canceco Company Produces and Sells Pillows