Armando Company produces and sells mattresses. It expects to sell 10,000 mattresses in the current year and had 1,000 mattresses in finished goods inventory at the end of the previous year. Armando would like to complete operations in the current year with at least 1,250 completed mattresses in inventory. There is no ending work-in-process inventory. The mattresses sell for $300 each. What would be the total sales for the current year?
A)$3,375,000
B)$3,675,000
C)$3,000,000
D)$3,300,000

Question

Quizplus · Accepted Answer

The total sales for the current year would be calculated by multiplying the expected sales of 10,000 mattresses by the selling price of $300 each, resulting in $3,000,000. The inventory levels do not affect the sales revenue calculation.

Armando Company Produces and Sells Mattresses