Figure 15-5
Canceco Company produces and sells pillows. It expects to sell 10,000 pillows in the year 2008 and had 1,000 pillows in finished goods inventory at the end of 2011. Canceco would like to complete operations in the year 2008 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 Figure 15-5. What would be the total sales for the year 2008?
A)£50,000
B)£55,000
C)£56,250
D)£51,250

Question

Quizplus · Accepted Answer

The total sales for the year 2008 are calculated by multiplying the expected number of pillows sold (10,000) by the selling price per pillow (£5), which equals £50,000.

Figure 15-5 Canceco Company Produces and Sells Pillows. It Expects to Sell