Question

Burgandy Company produces and sells pillows. It expects to sell 15,000 pillows in the next year and will have 1,500 pillows in finished goods inventory at the end of the current year. Sleepgood would like to complete operations next year with at least 1,350 completed pillows in inventory. There is no ending work-in-process inventory. The pillows sell for $6 each. How many pillows would be produced in the next year? a. 10,000 pillows b. 16,500 pillows c. 11,250 pillows d. 14,850 pillows

Answer 1

Answer:

The correct answer is D.

Explanation:

Giving the following information:

It expects to sell 15,000 pillows in the next year and will have 1,500 pillows in finished goods inventory at the end of the current year. Sleepgood would like to complete operations next year with at least 1,350 completed pillows in inventory.

Production= 15,000 + 1,350 - 1,500= 14,850 pillows