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9 February, 20:15

Calculator Excellent Company manufactures lamps. The estimated number of lamp sales for three months are as follows: Month Sales August 12,000 September 16,000 October 15,000 Finished goods inventory at the end of July was 3,600 units. Ending finished goods inventory is budgeted as 30% of the next month's sales. Excellent expects to sell the lamps for $30 each. In November, sales are projected at 18,000 lamps. How many lamps should be produced in September? a. 11,000 lamps b. 10,500 lamps c. 14,000 lamps d. 15,700 lamps

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  1. 9 February, 21:16
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    September production = 15,700 lamps

    Explanation:

    given data

    Month Sales

    August 12,000

    September 16,000

    October 15,000

    goods inventory = 3,600 units

    goods inventory budgeted = 30%

    sell the lamps = $30 each

    sales projected = 18,000 lamps

    to find out

    many lamps should be produced

    solution

    first we get here Beginning inventory that is

    Beginning inventory = (0.3 * 16000)

    Beginning inventory = 4800

    and

    ending inventory is = (0.3 * 15000)

    ending inventory = 4500

    so September production is

    September production = September sales + Ending inventory - Beginning inventory ... 1

    September production = 16,000 + 4500 - 4800

    September production = 15,700 lamps
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