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

question 152

Multiple Choice

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. In going from the sales budget to the production budget, adjustments to the sales budget need to be made for

• A)finished goods inventories.
• B)cash receipts.
• C)factory overhead costs.
• D)selling expenses.

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Definitions:

Formality

The level of adherence to established rules, procedures, and conventions in a particular context.

Transnational Organization

An organization in which the global viewpoint supersedes national issues.

National Issues

Problems, concerns, or challenges that affect a country as a whole, often relating to politics, economy, or social aspects.

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An outlook that considers the broader, international implications and perspectives in decision-making and strategy.