Figure 8-1 Canceco Company produces and sells pillows.It expects to sell 10,000 pillows in the year 2012 and had 1,000 pillows in finished goods inventory at the end of 2011.Canceco would like to complete operations in the year 2012 with at least 1,250 completed pillows in inventory.There is no ending work-in-process inventory.The pillows sell for $5 each.
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Refer to Figure 8-1.What would be the total sales for the year 2012?
A) $50,000
B) $55,000
C) $56,250
D) $51,250

Question

Quizplus · Accepted Answer

The total sales for the year 2012 would be calculated by multiplying the expected sales of 10,000 pillows by the selling price of $5 each, resulting in $50,000.

Figure 8-1 Canceco Company Produces and Sells Pillows