Burgandy Company produces and sells mattresses. It expects to sell 7,000 mattres

Question

Burgandy Company produces and sells mattresses. It expects to sell 7,000 mattresses in the current year and had 800 mattresses in finished goods inventory at the end of the previous year. Burgandy would like to complete operations in the current year with at least 900 completed mattresses in inventory. There is no ending work-in-process inventory. The mattresses sell for $500 each. How many mattresses will be produced in the current year?

a. 7,100 mattresses

b. 8,000 mattresses

c. 9,450 mattresses

d. 6,320 mattresses

Explanation / Answer

a. 7,100 mattresses Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Sales in units                      7,000.00 Ending Inventory in units                          900.00 Total Required Inventory = 7000 + 900                      7,900.00 Less Beginning Inventory                        (800.00) mattresses will be produced in the current year = 7900 - 800                      7,100.00

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