Asian Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months for the current year are as follows: $$\begin{array} { l r }
\text { Month } & \text { Sales } \
\text { October } & 10,000 \
\text { November } & 14,000 \
\text { December } & 13,000
\end{array}$$ 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.
What is the expected sales revenue for December?
A)$250,000
B)$350,000
C)$325,000
D)$100,000

Question

Asian Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months for the current year are as follows: $$\begin{array} { l r } 
\text { Month } & \text { Sales } \
\text { October } & 10,000 \
\text { November } & 14,000 \
\text { December } & 13,000
\end{array}$$ 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.
What is the expected sales revenue for December?
A)$250,000
B)$350,000
C)$325,000
D)$100,000

Quizplus · Accepted Answer

The expected sales revenue for December is calculated by multiplying the number of units sold by the price per unit. For December, the sales are 13,000 lamps at $25 each, so the revenue is 13,000 * $25 = $325,000.

Asian Lamp Company Manufactures Lamps Finished Goods Inventory at the End of September Was 3,000