Figure 8-1 Armando Company produces and sells mattresses. It expects to sell 10,000 mattresses in the year 2015 and had 1,000 mattresses in finished goods inventory at the end of 2014. Armando would like to complete operations in the year 2015 with at least 1,250 completed mattresses in inventory. There is no ending work-in-process inventory. The mattresses sell for $300 each.
Refer to Figure 8-1. What would be the total sales for the year 2015?
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 year 2015 would be calculated by multiplying the expected sales of 10,000 mattresses by the selling price of $300 each, resulting in $3,000,000.

Figure 8-1 Armando Company Produces and Sells Mattresses