Figure 8-2
Asian Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months of 2016 are as follows:
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 2016 sales is projected at 16,000 lamps.
-Refer to Figure 8-2. In going from the sales budget to the production budget, adjustments to the sales budget need to be made for

Question

Figure 8-2
Asian Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months of 2016 are as follows:
  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 2016 sales is projected at 16,000 lamps.
-Refer to Figure 8-2. In going from the sales budget to the production budget, adjustments to the sales budget need to be made for

Quizplus · Accepted Answer

Adjustments need to be made for finished goods inventories when going from the sales budget to the production budget, as the ending finished goods inventory is budgeted to equal 25% of the next month's sales.

Figure 8-2 Asian Lamp Company Manufactures Lamps. the Estimated Number of Lamp