Figure 15-5 Canceco Company Produces and Sells Pillows. It Expects to Sell

question 57

Multiple Choice

Figure 15-5
Canceco Company produces and sells pillows. It expects to sell 10,000 pillows in the year 2008 and had 1,000 pillows in finished goods inventory at the end of 2011. Canceco would like to complete operations in the year 2008 with at least 1,250 completed pillows in inventory. There is no ending work-in-process inventory. The pillows sell for £5 each.
-Refer to Figure 15-5. How many pillows would be produced in the year 2008?

• A)10,000 pillows
• B)11,000 pillows
• C)11,250 pillows
• D)10,250 pillows

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Definitions:

Building

A structure with a roof and walls, such as a house or factory, constructed as a place of business, residence, or for other uses.

Cash

Liquid assets held by a company or individual, used for transactions or as a reserve for future payments.

Consolidation

Consolidation is the process of combining the financial statements of a parent company and its subsidiaries into a single, comprehensive set of statements.

Outstanding Common Stock

Shares of a company's common stock that have been issued and are in the hands of investors, including those held by the public and company insiders but excluding treasury shares.