Question

Sleepgood Company produces and sells pillows. It expects to sell 10,000 pillows in the next month and will have 1,000 pillows in finished goods inventory at the end of the current month. Sleepgood would like to complete operations next month with at least 1,000 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 month? Group of answer choices 10,000 pillows 15,350 pillows 14,350 pillows 14,850 pillows

Answer 1

10,000 pillows

Step-by-step explanation:

hope this helps:)

Answer 2

Production budget for next month = 10,000 units

Step-by-step explanation:

The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories.

Production budget = Sales budget + closing inventory - opening inventory

Opening inventory for next month = closing inventory for this month = 1000 units

Closing inventory for next month is given as 1000 units

Production budget = 10,000 + 1,000 -10000

= 10,000 units