What is the expected revenue for the three months from October to December?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
D’Lightful Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months of the year 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. The company expects to sell the lamps for $25 each. January 2018 sales is projected
at 16,000 lamps.
What is the expected revenue for the three months from October to December?
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Month
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Sales
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October
|
10,000
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November
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14,000
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December
|
13,000
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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. The company expects to sell the lamps for $25 each. January 2018 sales is projected
at 16,000 lamps.
What is the expected revenue for the three months from October to December?
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