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 November?
a. 13,750 lamps
b. 14,000 lamps
c. 11,000 lamps
d. 10,500 lamps
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