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Calculating Yearly Production Numbers

A company produces and sells pillows. It expects to sell 10,000 pillows in the year 2012 and had 1,000 pillows in finished goods inventory at the end of 2011. Candace would like to complete operations in the year 2012 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 would be produced in the year 2012?

a. 10,000 pillows
b. 11,000 pillows
c. 11,250 pillows
d. 10,250 pillows

Solution Preview

They expect to sell 10,000 units in 2012.

Inventory = 1,000
Inventory for 12/31 = 1,250

Each unit = $5 ...

Solution Summary

A company produces and sells pillows. It expects to sell 10,000 pillows in the year 2012 and had 1,000 pillows in finished goods inventory at the end of 2011. Candace would like to complete operations in the year 2012 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 would be produced in the year 2012?

a. 10,000 pillows
b. 11,000 pillows
c. 11,250 pillows
d. 10,250 pillows

$2.19