Sleep Country Company produces and sells pillows.It expects to sell 10,000 pillows the coming year,and it had 1,000 pillows in the finished goods inventory at the end last year.Sleep Country would like to complete operations in the coming year with at least 1,250 completed pillows in inventory.There is no ending work-in-process inventory.The pillows sell for $5 each.How many pillows should be produced in the coming year?

Question

Quizplus · Accepted Answer

The company expects to sell 10,000 pillows and wants to end the year with 1,250 pillows in inventory. Therefore, it needs to produce 10,000 + 1,250 - 1,000 = 10,250 pillows.

Sleep Country Company Produces and Sells Pillows