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?
a. 9,500 lamps
b. 10,000 lamps
c. 14,000 lamps
d. 10,500 lamps