Question

Asian Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months for the current year are as follows: Month Sales October 10,000 November 14,000 December 13,000 Finished goods inventory at the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales. Asian Lamp expects to sell the lamps for $25 each. January sales is projected at 16,000 lamps. How many lamps should be produced in October

Answer 1

Answer:

13,750 lamps

Explanation:

Calculation to determine How many lamps should be produced in October

Numbers of lamps=(13,000 × 0.25) + 14,000 − (14,000 × 0.25)

Numbers of lamps=3,250+14,000-3,500

Numbers of lamps= 13,750 lamps

Therefore The numbers of lamps that lamps should be produced in October is 13,750 lamps