Response:
Total Sales= $3,000,000
Clarification:
Based on the following details:
The expectation is to sell 10,000 mattresses over the current year, with 1,000 mattresses available in finished goods inventory at the previous year's close. Armando aims to end this year with at least 1,250 finished mattresses in inventory. There won't be any leftover work-in-process inventory. Each mattress retails for $300.
Production:
Sales projected= 10,000
Ending inventory goal= 1,250
Beginning inventory= (1,000)
Total needed= 10,250
Sales therefore total= 10,000*300= $3,000,000
